How engineers enable banks to be future-ready?

The once-traditional-now-digitized banking sector is increasingly becoming synonymous with technology and innovation. Indeed, banks have reached a break-or-make moment. They need to focus on going digital-first or risk shutting shop. And the key enablers driving this dynamic change are engineers. From building information systems and improving security to streamlining business process flows, engineers play a critical role in helping banks be future-ready.

The crucial role of technology in today’s banking landscape

Digitalization, advancements in banking technology, and increased demand for a digital banking experience by Millennials and Gen Z customers have transformed the way people interact with banks and the way banks do business on a day-to-day basis. The data, too, paints an encouraging picture:

• According to a recent Accenture report, 68% of banking executives claim that the pace of digital transformation for their organization is accelerating.
• The US Neobank Market report states that 89% of US respondents actively use mobile banking channels today. 
• Furthermore, as per Juniper Research, successful banking-related chatbot interactions will grow by 3,150% between 2019 and 2023.

The writing is on the wall -- banks are not shying away from adopting futuristic technology to increase customer retention and improve the overall user experience. In fact, an Accenture study claims that there's a growing need for a ‘different’ path if banks wish to stay afloat. And while banks are clearly doing plenty to digitalize their front office operations, there needs to be an increased focus on the back-end work as well.

Why do banking organizations need the services of engineers?

This leads us to the question: What do banks need to do to drive better performance, and by extension, improved business outcomes in the digital-first era? The answer lies in leveraging the right talent pool of engineers–ones who can tackle the challenges that plague the banking system and solve these efficiently and quickly. 

First, let’s understand the need for creating a talent pool of certified and experienced engineers in today’s banking landscape:

1. Increased demand for high-performance, scalable systems

Banking institutions require systems that work like a well-oiled machine, particularly in times of high load. This is where software engineers can play their part and design responsive systems to handle front- as well as back-end tasks. Moreover, engineers can build solutions that solve real-world problems with analytics. These solutions can effectively turn gigantic proportions of data into meaningful and insightful actions. 

2. Greater focus on information security

Instances of data breaches and theft are rampant in the financial sector. As per Accenture, the cost of cyberattacks is highest in the banking industry, reaching $18.5 million annually per company. Clearly, without foolproof software and tools in place, banks are left vulnerable to security threats that can be devastating for their reputation and operations. An engineer’s coding and puzzle-solving skills become invaluable here. They can proactively guard the bank against potential cyberattacks and act as security advisors too.

3. Need for a mix of futuristic technologies

Banks need employees adept at using a cocktail of technologies (think machine learning, financial engineering, etc.) that align with the bank’s business goals and the consumer’s changing requirements. There’s a greater need to design, deploy, and integrate these technologies with increased agility and flexibility–a specialty of engineers.

Engineers: Combining technical know-how with practical knowledge

Engineers possess specific skillsets and behavioral traits, as well as characteristics, that can make them a perfect fit for banking organizations. These include (but are not limited to):

1. Technical skillsets

In the banking domain, staying abreast of the latest technological advancements is crucial. This is where engineers can help by:

• Keeping up with emerging technology, assisting peers in understanding the same, and building scalable systems and technologies
• Researching and analyzing innovative ways to make solutions that resolve a wide range of banking problems
• Creating low latency infrastructure solutions
• Upgrading both hardware and software components of modern computer systems to hasten the digital transformation of the bank

2. Excellent mathematical and analytical skills

Engineers can leverage their knowledge of mathematics, programming, logical thinking and analytics, to build models for prediction, pricing, trading automation, data analysis, among others. In fact, they can provide their qualitative perspectives on crucial financial and technical issues that can positively affect the bank’s decisions and drive success across global markets.

Personality traits of engineers that make them valuable assets

When it comes to the soft skills and behavioral characteristics needed in the banking sector, engineers need to be -

1. Patient and experienced at problem-solving

Software development in the banking sector is not an easy feat. A software solution may take days to design, develop, and execute.

2. Adaptable to a high-pressure environment

In the banking sector, solutions are usually needed within a small timeframe. This means tight deadlines and quality, bug-free deployments. Working under high pressure should be an engineer’s strong suit.

3. Able to align with the bank’s overall purpose

Apart from generating revenues for a bank, an engineer’s job is purpose-driven. It involves addressing the customer’s pain points while creating value-driven solutions. For this, they need to have a higher sense of purpose than other employees. 

4. Good communicators, strategic thinkers and exceptional leaders

Engineers are often encouraged to take up extra-curricular activities while studying, enabling them to improve their time management and communication skills. This makes them multi-taskers and better leaders at the workplace. 

In conclusion

Financial institutions are increasingly becoming more dependent on the latest technology for common, everyday tasks. This development has paved the way for engineers to make their mark in the banking sector, with innovative opportunities in fields like quantitative strategy, cyber security, software engineering and systems engineering. By combining new-age technology with a future-first and rational mindset and a customer-centric work philosophy, engineers can enable better business outcomes for any financial institution.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.