04 Sep Technology management and cybersecurity are top themes for long-term growth
Sustainable growth is always a paramount goal for banks, but that’s particularly true in 2018 and beyond. With a rapidly evolving landscape filled with emerging technologies, fierce competitors and deepening regulations, banks must remain alert, attentive and quick if they are to realize continued growth into the future.
Technology management and cybersecurity have emerged as the dominant themes in making that happen, according to a 2018 Banking Industry Outlook from Deloitte. However, to understand how these components can propel banks to greater profits and higher efficiency rates, you should first understand the economic landscape.
This includes what kind of an impact it will have on the banking industry, which means we should start by analyzing the gross domestic product (GDP) and how it will be affected in the near future.
A brief background on the global economy and real GDP
Theoretically, GDP should remain strong in most of the major markets, empowering most industries and businesses room to experience growth in sales and revenue. Subsequently, retail banks should also anticipate an increase in income due to narrowing labor markets that are increasingly apparent in the U.S. as well as the European Union.
The Federal Reserve has already raised interest rates, and the European Central Bank will likely follow suit due to these favorable conditions. However, the question remains: How can banks and other lending institutions optimize growth and make use of such conditions and growth?
The answer is through a focus on technology and cybersecurity.
Portfolio management through technology
Already, banking and financial lending institutions have ventured toward embracing new technological mediums, with a heavy eye toward digital software that helps simplify banking transactions in areas such as commercial lending, covenants management, factoring and asset-based lending.
However, a concentrated focus should be placed on leveraging technology to drive greater efficiencies in the area of portfolio management. With technology grabbing a fiercer hold of the industry, financial institutions can only benefit by ensuring that the platform or software they’re using is able to manage portfolios properly to deliver the most impact to their business.
Ideally, technology should enable lenders to simplify processes by allowing them to perform tasks, such as analyzing collateral, storing documents in a centralized database and benefiting from data collections tools.
Tools that make portfolio management simpler could attract greater business and benefit financial institutions in the long run, as competitors identify enticing ways to deepen simplification and rise above one another.
Cyber risks and decision-making
At their core, banks should consider cybersecurity a key piece when designing business processes, innovations and strategies. Cyber risks are ever-present; even inevitable nowadays with cybercriminals getting bolder and more daring in their attempts to launch a successful cyberattack on even the largest of companies – with smaller financial and alternative lending institutions being a permanent, desired target.
Interconnectedness, legacy banks systems and new technologies present in bank systems only exacerbate matters for institutions and offer greater promise for criminals. Essentially, this means that cybersecurity should be an inherent consideration in any and every type of process and change a financial institution implements, whether that’s refreshing systems or embracing new technologies.
With technology management and cybersecurity as central themes, banks, commercial lenders and alternative lending institutions can continue on an onward and upward trend that promises to deliver greater competitive edge, resilience and vast growth potential into the future.
If you run a bank or any business belonging to the lending industry, ABLSoft can help you remain competitive and safe when you decide to leverage technology in increasing your bottom line. We will be happy to show you how we can help you navigate your way to success and how we can assist you in improving usability for both you and your customers while keeping critical data secure.