What Banks Should Learn From Software Developers

Agility is a crucial success factor today, especially when it comes to open banking. The financial sector can benefit from the agile methods of software development.

Banks Should Learn From Software Developers

The wave of consolidation in recent years has changed the banking landscape in Germany significantly. Nevertheless, the local industry is still considered “overbanked”: With the many savings banks and cooperative banks, the number of institutes is comparatively high. More and more fintech startups are entering the market at the equivalent time, luring customers with innovative offers and fast service. The pressure on the banking landscape is increasing from several sides. You have to make processes in the backend even more efficient, simplify and accelerate service and at the same time be innovative. The diverse challenges demand more flexibility and agility from the banks – and that about the entire organization. You can learn many methods from here software developers.

Scrum and Design Thinking Is Taking Over The Organization.

Banking Software Development Company has redesigned team and project work using agile methods. The group divides the project duration into stages of around 30 days. During this time, for example; the team adds new functionality to the product or improves an existing one. At the top of every step, there should be a completely functional intermediate or a new feature ready for testing. The effects of the test set the foundation for further work.

With this agile and efficient way of working, not only can innovative banking applications be developed, but it also works as a standard for other departments in the bank. The fields of application are diverse: Many companies are already using the Scrum method described above to streamline their project management. In this way, however, Can also modernize customer service or new regulations implemented. The respective project goal determines how the team is composed and how the sub-goals are designed.

 

A much more fundamental approach is design thinking. The methodology asks the question: Is there a human need for it? This creates new product ideas that complement the portfolio. But so far, companies have usually not focused on the user perspective when it comes to innovations. They focused on technology, feasibility, economy and marketability. In doing so, they often neglect whether there is a specific need for it. Design thinking can therefore help to take a big step towards customer-centricity.

 

New Roles For Software Developers

But not only the agile methods of software developers find their way into the entire organization. The developers themselves are also moving closer to the centre. Because at a time when digital applications are a decisive factor for the success of a financial service provider, software developers should take on more strategic roles in this industry. Your area of ​​responsibility changes from programming to application architecture and design. 

Another factor contributing to the changing role is that developers can find new applications and business ideas for technologies particularly effectively. For example, they know the possibilities of artificial intelligence and blockchain. They can develop use cases for different company areas in the backend and frontend of the bank.

 

At the same time, however, they also know what prerequisites the technologies require and keep an eye on any technological challenges. That is why more and more corporations are setting up dedicated innovation teams and rooms. In so-called innovation labs, application experts are at the centre of generating ideas for new solutions and products. However. Must closely network these teams with the parent company to enable knowledge transfer. The members of the Innovation Labs also need to understand the challenges the operational units are facing. This is the only way to improve processes but also to bring critics on board. To offer real added value, they should come up with exciting ideas and pursue specific strategic goals that advance the company.

Agile AS AN ELEMENT OF THE CUSTOMER-CENTRIC BANK

Agile methods and open banking can only be one building block towards a customer-centric bank. It is just as important to internalize an elegant way of working and anchor them in the corporate culture. Then Scrum and Design Thinking will not become an end in themselves. Banks can only position themselves to be future-proof if employees’ attitudes, from managers to branch employees, are geared towards the needs of customers. Software developers can be role model for this attitude. 

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