It's time for Nordic banks to embrace DevOps and improve their organisations’ performance. Otherwise, they'll be overtaken by agile and innovative fintech companies.
The digital transformation puts higher demands and expectations on the speed, availability and flexibility of digital services. Especially as Fintech companies are increasingly taking big bites from the established financial players.
Fintech companies often operate with a speed and innovation that outruns the innovation pace of established financial institutions which is possible by effective use of the DevOps model. Innovation often comes from continuously trying and testing ideas and both the work routines and underlying infrastructures must be set up for innovation. The entire company should therefore be involved. When for example, the IT and developer departments work closely together, a fully automated environment can be created to enable services that run 24/7 and facilitates the deployment of new ideas and functionality in a continuous pace.
Increasing company performance, innovation speed and efficiency
DevOps is a lot of things but it is primarily a way of dedicatedly working on increasing company performance, innovation speed and efficiency. DevOps will be a necessity for larger financial institutions if they wish to compete with light-footed newcomers. A fintech company is an expert in a specific financial field and we can foresee a future where large financial institutions concentrate on the core business and build eco-systems of fintech companies to provide the end customer with a complete solution. We already see banks as Nordea that has announced future large lay offs of personnel, among other things, to be able to meet the new digital landscape.
It's important that larger financial institutions realise that all companies must adapt to the fastest innovation speed in the eco-system. If a large bank can't do this due to slow and discontinuous internal delivery models, they'll fade out in favour of more innovative players.
Established banks that adopt the DevOps model, including continuous delivery, for an ongoing improvement of customer services, must also split up their monolithic systems into micro services, in order to innovate and deploy smaller changes more often.
Large financial institutions have their well structured IT services with secure IT systems and well established core systems. When they adopt the DevOps model with the advantages of the fintech eco-system, we as end customers, will see a leap of innovation that will make our lives easier