The need for digitization has increased during the pandemic- change in existing process, adoption of new systems and process, new businesses, and the applicability in diverse industries. This has been glaringly visible in the banking /financial services industry where Banks are not able to service the consumer online or meet the needs of new age customer. Covid has changed the digital needs and neither the Banks nor the technology vendors are equipped to handle such a large demand. While some of the Banks are struggling to take the next step in terms of change of culture/people/solution/processes, few Banks which has initiated the processes are still not able to take the right decisions to move forward. The changes required are drastic and financial institutions are confused- right vendor/solution/process/digitization/right applicability and use cases. Based on individual businesses, it is very difficult to procure one single solution/vendor to fulfil the requirements- but selection of a platform which can be a steppingstone for future course of action is required.

Financial institutions worldwide are otherwise struggling in terms of assessing the right needs/business/budget/approvals to meet the digitization needs during the pandemic and while they start with an initial set of requirements, the scope and the magnitude is changing fast. The software vendors and the client facing group are not helping these causes as they are sandwitched between a product selling to a solution selling to a vendor selling and not able to advise the client appropriately which will help in effective decision making. There is a shortage of skill set in terms of guiding or providing consultancy on the right approach or a near to best approach- from the vendor side/financial institution side. The paraphrase “One size does not fit all “holds true here as well and the use case which has augured well for one Bank/FI may not fit the needs of another.

The cycle time for software purchase decisions has increased drastically considering the complexity and it is easily forgotten that time is the essence for implementing digital solutions and a solution drawn at an inappropriate time is unlikely to create required impact in the market. That does not always mean a badly crafted solution/process has to be implemented or a solution not proven/tested/inappropriate needs to be launched at a faster pace. Getting the right idea/solution with 100% perfection/costing at this age is not ideal and the solution can be improvised over a period. Many a times, the Govt also adopts the same method, launches many innovations/technology initiatives to a mass set of population on a time to improve basis. Seeking a 100% perfection with ideal needs/vendor/solution/costing is not desirable during the era of pandemic when digitization and changes are happening at a drastic pace and prediction is impossible. When the solution implementation is delayed, a loss in market share /impact in market for the Bank/FI is likely and the more the delay, the more the impact.

It also depends on the applicability of the solution which is strategized by the Bank - whether it is a core solution or a peripheral solution, or a value- add solution. All types of solutions are required at various stages for the Bank, and it depends on the digital maturity of the institution and the strategic intent. Decision making on digitization and selection of vendor/solution is complex and time consuming, but it serves as an accelerator in the right direction. Platform approach/scalability/architecture/functional richness/vendor credentials may require assessment which is time consuming  but need not always be the perfect approach. Selecting a vendor/solution with inadequate information /knowledge and mutual trust is also not appropriate. Sometimes Banks look at massive overhaul of the entire solution or sometimes a niche solution is sought to bridge the gaps in the existing solution available in the ecosystem or sometimes a phased modernization of the solutions is planned over a period. This also depends on the IT budgets earmarked year on year by the Bank.

There can be a checklist or a framework which can identify the minimum/medium/maximum requirements satisfaction indices or Minimum Viable product (MVP) based on which an informed decision can be taken by the Banks. It again depends on the availability of time and the quickness in the qualification process. Many Banks also engage a consultant in the selection process, but it is likely to delay the process/add more wish list than MVP and time to market is affected. An independant consultant will eliminate the vendor bias and likely to create a document/report after evaluation which can help in selection but still need not be the right one as per Bank needs.

To conclude, the ever- increasing digital changes caused due to covid has opened an era of opportunities for the banks/financial institutions to reassess/reinvent/redesign, but time is the essence and an informed decision at the right time can enable improvement of business. There could be agility which is possible with a new solution but delaying the decision, searching for the 100% perfect solution/vendor is not practical and may hamper the growth in business where a new solution with MVP may have been timely. The digitization and extent of change cannot be forecasted and looking for a software for the future where prediction on digital needs/changes is difficult to ascertain. Multiple sectors/ industries and software vendors need to stay more current than anytime and expect minimal disruption or a disruption which can be controlled with the software /solution/platform which are being procured today. Improvisations are always possible with/without the help of vendors. A near perfect solution will largely remain a theory more than anything else and searching for that nonexistent one will prove detrimental for the Banks. Irrespective of the multiple methodology proven, tested and adopted in the past, there cannot be 100% perfect method in the current environment where forecasting digital change is unpredictable and likewise the right solution.