“If it ain’t broke, don’t fix it” is a sentiment you can apply to your firm only if it doesn’t use any form of technology. But because you most certainly do use technology in your business, you need to either fix it or risk falling behind.
There’s a difference between tech that maintains and tech that performs. Content marketing agency Raconteur Media reports that “perhaps as many as 80 per cent of financial services organizations are sitting on core systems which are 25 to 30 years old.”
Technology is constantly improving, which can quickly render older technologies obsolete. And in the last 30 years, the rate of technological innovation has accelerated. If you’re processes have not been updated, there’s little chance you’re functioning at top capacity.
The high price of Ludditism. In addition to costing precious time and money, utilizing outdated technology may be putting your firm in danger. Newer systems are infinitely better equipped to keep client information secure. They are less likely to fail and more likely to be fixed without serious consequence when they do.
You may be clinging to dinosaur-era technology as a money-saving tactic. But outdated tech can end up being far more expensive when the cost of repairs and grappling with difficulties is taken into consideration. It’s akin to owning an old car—maintenance is frequently higher than the cost of a brand new vehicle.
And in case you need more convincing that keeping old tech is doing everything except saving you money, Raconteur claims “regulation is increasing and fines for those who fail to meet the standard are becoming punitive.”
Meet expectations. Beyond regulatory considerations, existing and prospective clients expect you to stay current when it comes to technology. “The business world functions on data and it is the customers of financial services companies who will determine how that data is exchanged, not the providers,” says Raconteur.