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Next-gen technology transformation

Next-gen technology transformation in financial services

A road map for technology innovation, tech productivity, and platform modernization.

Financial services technology is currently in the midst of a profound transformation, as CIOs and their teams prepare to embrace the next major phase of digital transformation. The challenge they face is significant: In a competitive environment of rising cost pressures, where rapid action and response is imperative, financial institutions must modernize their technology function to support expanded digitization of both the front and back ends of their businesses.

Furthermore, the COVID-19 crisis is putting immense pressure on technology capabilities (e.g., remote working, new cyber-security threats) and requires CIOs to anticipate and prepare for the “next normal” (e.g., accelerated shift to digital channels).

Most major financial institutions are well aware of the imperative for action and have embarked on the necessary transformation. However, it is early days—based on our experience, most are only at the beginning of their journey. And in addition to the pressures mentioned above, many are facing challenges in terms of funding, complexity, and talent availability.

This collection of articles—gathered from our recent publishing on the theme of financial services technology—is intended to serve as a roadmap for executives tasked with ramping up technology innovation, increasing tech productivity, and modernizing their platforms.

Somesh Khanna is a senior partner and Xavier Lhuer is a partner, both in McKinsey’s New York office. Vik Sohoni is a senior partner in the Chicago office.

Reimagine the role of technology to be a business and innovation partner

Article

The CEO’s new technology agenda

– Technology performance has become critical to business success. Here’s how a CEO can focus the technology function on a company’s strategic priorities.
Article

The CIO challenge: Modern business needs a new kind of tech leader

– As technology becomes increasingly important, an organization’s success depends on whether the CIO can move from being a functional to a strategic business leader.
Article

The platform play: How to operate like a tech company

– For tech to be a real driver of innovation and growth, IT needs to reorganize itself around flexible and independent platforms.
Blog Post

How US mid-cap banks can solve the conundrum of scale in technology

Almost everyone agrees that scale is the name of the game in banking technology. If that’s true, is there a way for smaller banks to compete?
Interview

Transforming a bank by becoming digital to the core

– Understanding what it takes to act like a tech company requires a few key breakthroughs, as this interview with the CIO for DBS Bank highlights.
Article

After the first wave: How CIOs can weather the coronavirus crisis

– Chief information officers must act swiftly to manage IT through the pandemic in a pragmatic way.

Reinvent technology delivery to drive a step change in productivity and speed

Blog Post

Transforming banks’ IT productivity

– Banks need highly efficient IT delivery models to meet the challenges of digital disruption and control costs.
Article

An executive’s guide to software development

– This essential capability is a blind spot for many nontech leaders.
Interview - McKinsey Quarterly

ING’s agile transformation

– Two senior executives from the global bank describe their recent journey.
Article

Flip the ratio: Taking IT from bottleneck to battle ready

– A new way to focus on outcomes and results can free IT organizations to spend more time on business priorities.
Article

Transforming IT infrastructure organizations using agile

– Traditional ways of managing IT infrastructure can impede the fast-paced delivery of digital solutions. Agile methods can be used to boost efficiency, speed, and quality.

Future-proof the foundation by building flexible and secure platforms

Blog Post

Next-generation core banking platforms: A golden ticket?

– Incumbent banks are concerned about the limitations of their core architecture platforms. Newly available tools make the challenge less daunting.
Blog Post

Cutting through the noise: How banks can unlock the potential of APIs

– API-driven products and services represent both a competitive threat to incumbent banks and a significant opportunity.
Report

Unlocking business acceleration in a hybrid cloud world

– Companies that have moved operations to the cloud still aren’t achieving the desired operational agility. A renewed focus on people, processes, and policies can unlock the cloud’s full potential.
Article

Designing a data transformation that delivers value right from the start

– While most companies understand the importance of analytics, fewer than 20 percent have maximized the potential and implemented AA at scale.
Article

Cybersecurity: Linchpin of the digital enterprise

– As companies digitize businesses and automate operations, cyberrisks proliferate; here is how the cybersecurity organization can support a secure digital agenda.
Article

Cybersecurity tactics for the coronavirus pandemic

– The pandemic has made it harder for companies to maintain security and business continuity. But new tactics can help cybersecurity leaders to safeguard their organizations.