So yesterday, I identified the three biggest challenges to banking today based upon a major dialogue on social media with the Next Bank Facebook community. Those three barriers are regulations, legacy and culture.
The three barriers are intertwined in a vicious circle. Regulations stop banks from innovating; legacy systems stop banks from innovating; a risk averse culture stops banks from innovating. All three things work together to wrap the bank in ropes of stagnation. Management are unwilling to change systems because it is too risky. Management are unwilling to place systems in the cloud because it is too risky. Management are so focused upon regulation, that innovation takes a back seat.
That’s one view of the world. The other view is that these are intertwined reasons for doing nothing.