Connectivity to optimize the commercial and operational efficiency of finance companies in 2010
Connectivity has invaded every aspect of our private and professional life. There is no escaping it and the financial industry is no exception to the rule. Overlooking connectivity would certainly have a negative impact on both the commercial and operational efficiency of banks and insurance companies.
Connectivity and a new generation
The arrival of the « generation Y » on the job market is a fact that cannot be ignored. Moreover, this generation, formed by people born after 1985, has new and different expectations that can’t be disregarded.
Generation Y, also called the internet generation, wants to be connected anywhere, anytime. In their private time, at the university or at work, … these young people cannot longer do without.
So it is not surprising at all that this generation feels attracted to state of the art companies and products that provide a high level of connectivity : access 24 hours a day, possibility to act in an autonomous way, …
One could think that his phenomenon is restricted to the generation Y and that companies still have all the time in the world to adapt themselves to its needs, considering the fact that a majority of these people is still quite young. But this would be a wrong presumption as generation Y has a huge influence on other generations. Just think about all the parents who have discovered « facebook » through their children and are now active users.
Moreover, for a lot of industries, connectivity has become a day to day reality : reservations for flights, business trips, hotels, … are made online; banks and brokers provide transactional websites.
Connectivity and commercial efficiency
Of course, the financial industry cannot escape the impact of connectivity. According to market analysts such as « Gartner » or « Forrester », more and more people are basing the choice of their financial products provider on the possibilities he offers in terms of connectivity and ‘self service’.
So financial product providers without a website could lose a significant number of clients as connectivity has become an essential topic that contributes in defining the general service level of a finance company.
But how does connectivity fit within the framework of a finance company ? In our opinion, the online selling of financial products would be rather difficult due to the lack of personalized advice. However, once the product has been bought, it becomes very interesting for the client to be able to consult his products online and to make online modifications to them within the context of an ‘after-sales’ service. The user-friendliness, the « design » and the high quality and technology level of a website are very important elements to transmit a positive « corporate » image of the insurance company.
Connectivity and operational efficiency
Connectivity can not only be established between a finance company and its clients but also between the finance company and its distribution network.
Internet connectivity with the company’s distribution network allows to improve the « business » processes. Thanks to connectivity, each intermediary can have automatic remote access to the most recent client data, realize sales transactions, optimize the client service, make changes at the client’s request, … and all this in real time ! In this way, connectivity reinforces the reliability of the data and will save the distribution networks a lot of time.
But finance companies can also benefit from connectivity as it allows the creation of central pan-european entities dedicated to the management and distribution of a specific product across Europe. One single back office will be installed within this central unit. The local entities and the different distribution networks will access this central tool via a web portal (front office) and web services in order to ensure the sales activities and client service.
The web portal does not only allow an increased specialization, but also makes the organization more flexible. Indeed, each local actor will be able to determine his own work method.
How can finance companies optimize their connectivity in 2010 ?
Rich internet application technologies (« RIA ») and service oriented architectures (« SOA ») are the appropriate « IT » answers to optimize the commercial and operational performances of finance companies in 2010.
« RIA » technologies allow to meet the needs of generation Y in terms of accessibilty and user-friendliness. They also permit to develop intuitive, interactive, customizable, evolutive and performing web applications. In order to optimize their commercial performances, finance companies will need management tools that are based on these technologies.
Open, so called service oriented architectures (« SOA ») have also become essential for finance companies. SOA and the associated web services allow the optimization of the current (in-house and external) distribution partnerships as well as the setting up of new ones. The major assets of SOA are improved flexibility, shorter « time to market » and reduced distribution costs. In this way, SOA has become essential to optimize the commercial and operational performances of finance companies.
Finance companies must not only follow these « IT » trends but also analyze very carefully the evolution of the needs and requirements of generation Y. If they want to maintain the interest of these young people vivid, they will need to « push » the information and provide mobile and web applications, « Corporate » blogs or marketing via social networks.
Positioning of the offer of the ICT companies
ICT companies cannot ignore the trends generated by the needs of generation Y. As a publisher of financial software and IT service provider, BSB has very well realized their importance.
Indeed, Soliam and Solife, the BSB software solutions dedicated to the financial industry, use the RIA technologies (Flex of Adobe), are based on SOA and offer several web services. Thanks to these web services and its more than 10 years experience within this domain, BSB carries out every year numerous projects to improve the connectivity within Luxembourgian financial institutions.
If 2009 was the year that private individuals accepted social networks, 2010 will be the year that companies will implement connectivity. Financial institutions will have to reposition and integrate connectivity into their strategy in order to provide their clients with an appealing offer. ICT companies that are experts in web applications and SOA, such as BSB, can assist the financial industry in this essential process.
