Despite rapid innovations in data processing and machine learning, many businesses have yet to make the leap from the Industrial Age to the information age, and the gap between technological and organizational progress is widening. Closing this gap requires much more than short-term fixes, like adopting new technologies. Businesses need to organize around long-term strategies for growth and partnership in a sustainable way. The consequences for not doing so can be dire.
The Financial Industry Needs to Start Planning for the Next 50 Years, Not the Next Five
The financial services industry, a traditional laggard in technology adoption, is just now entering the digital phase. Signals abound: “fintech” companies are launching at unprecedented rates, with improved user experiences and more transparent practices, and banks are feeling the crunch; according to McKinsey, legacy financial institutions will see profits decline between 20-60% by 2025 if they fail to evolve digitally. The institutions that successfully cross the digital divide will invest in leaders who are building companies for the next 50 years, rather than for the next three to five years. Innovation in financial services will happen in part through the diffusion of new revenue models and technologies, combining entrepreneurial ideas with institutional and operational expertise. What’s needed is a concerted effort to invest in design thinking systems, and support for diverse and inclusive cultures that bring together people with divergent perspectives to share ideas and new approaches.