<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=2171572209666742&amp;ev=PageView&amp;noscript=1">

How Software Is Connected to Success in Banking

2 min read

Software has long become a core element of customer advisory services. If it provides the relationship manager with the right information at the right time, he can fully play on his strengths – to the benefit of the customer.

How is software connected to success in banking – has everything been said or is there still a need to explain?

This question seems trivial at first glance. Thus, in the context of private banking, a typical answer might be: «The quality of the advice is key and the software provides the information basis for this.» While this answer is not completely wrong, it’s not the whole truth either.

No doubt, the relationship manager is a key success factor. Especially in a time when financial market information is easier and cheaper to obtain than ever before. However, to really play on the relationship manager's strengths, software is needed that supports him throughout the entire customer journey – with the necessary flexibility and the right information at the right time. In other words: A software that helps him in his personal way of working is a key factor, particularly in private banking.

Today, information gathering requires a high manual effort

The reality looks different. The relationship manager adapts to the software and spends a considerable amount of time consolidating or even entering data from different systems to create an information base in preparation of the customer meeting. Wouldn't he be happier to devote more energy to customers – with more and more quality time? And wouldn't that be more useful to the bank in the long run?

The good news: Both goals are achievable.

The initial situation is not ideal. The trouble is that the software tool set available to the relationship manager today consists of individual applications that are more or less well connected with each other. They are often designed within product silos and follow their own logic. In addition to the complexity, the maintenance costs for the relationship manager also increase continuously until a large part of the available IT budget is spent. The relationship manager's software tools meet the basic needs, covering the «run the bank» requirements. However, they do not provide a basis for flexible design options for business processes or for the future development of the business model. In the worst case, this initial situation is simply accepted. In the better case, which is more sustainable for the company's own future, the problem is tackled and the necessary degree of freedom is developed.

The key is software that provides the right data at the right time

The fact is that a high-value offering for the customer, which is not easily replaceable, results from the effective and efficient use of one's own core competencies, one's own USP, so to speak. The best way to achieve this is through customized software. Therefore, at the user level the software is designed to support the relationship manager, not the other way around. The related architecture retrieves the central data from existing applications and structures it in such a way that it is made available exactly when it is needed, ideally even proactively.

Expert functionality can remain in the related business applications, in which in can be integrated and used. The relationship manager is thus provided with the right information at the right time within his journey and without media disruption – efficiently and effectively. If better or new expert functionality or business applications is needed … no problem. Your tailor-made software allows the fast and flexible exchange of the relevant expertise.

Customized tools instead of standard software

In consequence, a change takes place: From a state of dominating legacy to a position of designing one's own software tools – to the benefit of one's own business.

Would you like to digitally map your own strategy, give your business model more impact, or give your employees a lever with which they can make the most of their skills? We’ll be pleased to listen to you. 

This text was originally published in German on www.finance-forum.li.

Meet us at the Finance Forum Liechtenstein

Learn more about the FFL

Published March 29, 2023

Written by

Picture of Kornel Wassmer
Kornel Wassmer

Managing Director Banking