{"id":11245,"date":"2022-01-18T19:09:34","date_gmt":"2022-01-19T01:09:34","guid":{"rendered":"https:\/\/threecloud.wpengine.com\/?p=11245"},"modified":"2024-04-17T13:49:23","modified_gmt":"2024-04-17T20:49:23","slug":"the-impact-of-agile-for-financial-services-3cloud","status":"publish","type":"post","link":"https:\/\/3cloudsolutions.com\/resources\/the-impact-of-agile-for-financial-services-3cloud\/","title":{"rendered":"The Impact of Agile for Financial Services – 3Cloud"},"content":{"rendered":"

The\u00a0Business Value of Agile Innovation<\/em>\u00a0is our new series looking\u00a0at\u00a0\u202fthe\u00a0many ways Agile can transform specific sectors for the better. Financial services leaders have their own considerations when it comes to Agile\u2013considerations shaped in part by\u202fas much if not\u202fmore time-to-market pressure than other industries.\u202fBelow, we\u2019ll look at what we really mean when we say \u201cagile\u201d, then we\u2019ll dig into the top two reasons financial services companies should embrace the methodology.<\/p>\n

What We Mean By \u201cAgile\u201d<\/h2>\n

Agile has turned into a buzzword, and many people still think of it strictly as a software development methodology. But Agile is about more than creating software, and\u00a0leading\u00a0a transformation is about more than adopting the term and using sticky notes, while still executing with a big-bang approach.<\/p>\n

Agile is about people, process, and tools. It\u2019s about finding economies of flow and working in a way that enables an organization to adapt and stay ahead of their competition. It\u2019s about responsiveness and balancing efficiency and effectiveness, because an organization can be 100% efficient and 0% effective. In short, a true Agile transformation can help teams work together to reduce time to decision and\u00a0time to market,\u00a0and we\u2019ll dig into the unique importance of those factors for finance next.<\/p>\n

Why Your Financial Services Company Needs Agile\u00a0Now<\/h2>\n

Change has been accelerating throughout the financial sector, and goes beyond the hugely disruptive and well-documented impact of cryptocurrencies. Agile, mobile platforms are threatening financial institutions across dollar-based banking, lending, and payment processing as well. There are many reasons to embrace Agile, but here are the top two we\u2019ve seen in terms of business outcomes:<\/p>\n

#1 Meet Demand for New Features<\/h4>\n

Occupational psychologist John Seddon has written on service organizations\u2019 \u201cability to \u2018absorb\u2019 customer demand.\u201d This involves empowering employees to respond to customer requests; adapt to change; and apply sense, reason, and intellect to realize those changes. For banking, more and more customers are demanding the convenience of using mobile devices,\u00a0Google, Apple, and\u00a0peer-to-peer payment\u00a0apps to transfer and manage their money.<\/p>\n

In addition, branch-based banks and credit unions are having to compete with purely online fintech startups, many of whom differentiate themselves in the market with innovative offerings. Some, like\u00a0Chime<\/a>, boast a fee-free model while fintech startup\u00a0Aspiration<\/a>\u00a0offers cash back on socially conscious spending.<\/p>\n

#2 Make Faster Credit Decisions<\/h4>\n

In small business and corporate lending, leading banks have embraced digitization and Agile in order to deliver core services faster. This has allowed them to bring time to decision down to five minutes and time to cash to less than 24 hours. Traditional banks, by comparison, average between three and five weeks on\u00a0time to decision\u00a0and nearly three months for time to cash.\u00a0As\u00a0McKinsey contributors<\/a>\u00a0put it, \u201cthese times will soon seem as antiquated and unacceptable as the three weeks it once took to cross the Atlantic.\u201d<\/p>\n

Mortgage lending platform\u00a0Roostify\u00a0presents consumers with simplified loan options and reduced time to close.\u00a0Rocket Mortgage<\/a>, meanwhile, has become America\u2019s leading home lender with \u201cmortgage in minutes\u201d as a key promise. To keep up, more than one bank now has a vision to automate 95% of their retail underwriting decisions. In the payment solutions space, high-growth 3Cloud client Clearent\u00a0automated key stages of their merchant onboarding and underwriting process to bring it down to just 30 seconds.<\/p>\n

In financial IT, what got us to today won\u2019t\u00a0necessarily\u00a0get us through the future. Things can change quickly and what was true yesterday might not be true today. As we work with teams, we need to help them shift from\u00a0a\u00a0Fragile\u00a0culture<\/a> that says \u201cI hate disorder and fall apart near it\u201d to an Agile and Anti-Fragile culture that says \u201cthe more disorder I face, the stronger I become.\u201d For help spearheading your own Agile transformation, reach out to us<\/a>. And stay tuned for an upcoming post where we\u2019ll cover overcoming obstacles to agility and preparing your organization, team, and tools.<\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0Business Value of Agile Innovation\u00a0is our new series looking\u00a0at\u00a0\u202fthe\u00a0many ways Agile can transform specific sectors…<\/p>\n","protected":false},"author":63,"featured_media":11461,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[381,292],"tags":[279],"class_list":["post-11245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-app-experience","category-app-innovation","tag-agile","topics-blog","industries-financial-services"],"acf":[],"_links":{"self":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts\/11245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/comments?post=11245"}],"version-history":[{"count":0,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts\/11245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/media\/11461"}],"wp:attachment":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/media?parent=11245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/categories?post=11245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/tags?post=11245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}