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Jay Kinker - Entrepreneur, Strategist, Technologist

Financial Institutions and other business domains should leverage technology for their cost cutting.

Most Financial Institutions have been very slow in upgrading themselves with new technologies. Obviously they cannot do frequent upgrades BUT all of them should regularly review their existing systems to identify areas where technology can help them in cost reduction.

An example - One of big operation cost for any financial institution is in sending financial messages via proprietary networks like (SWIFT, SIC, etc). Banks can do HUGE saving if they have internal system/application that sends valid financial messages internally (to its branches) or even to partners in many cases. This is easily possible today with today's technologies and many banks are successfully doing this to reduce their operation cost.

At the same time, banks can also reduce their IT spending by replacing many of their legacy systems. Many times you will see implementation and maintenance cost of legacy products more than cost of the product itself! I know many major banks still using legacy systems for their critical operations. New technologies will help them reduce their operation and maintenance costs.

Posted on Sunday, August 31, 2008 6:19 PM Financial Technologies | Back to top

Comments on this post: Cost cutting in banks / financial institutions

# re: Cost cutting in banks / financial institutions
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ICICI has announced to reduce its cost aggressively due to rising inflation and uncertain growth, . The bank has been shifted thousands of jobs from Mumbai to Hyderabad and this move will in turn remove inefficiencies. Also, I've heard that banking hours in several branches have been cut down and staff reimbursements like phone and conveyance bills have been curbed, and this is only the beginning.
Left by Sightline Payments on May 08, 2011 11:50 AM

# re: Cost cutting in banks / financial institutions
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Technology is the secret key of a successful business. It is right that it advanced a lot in a very short time and it is very difficult to keep up with it. Many companies use consumerization of technology and they have a real success on the market.
Left by Lisa on Nov 29, 2011 10:37 AM

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