Mexico. According to Tecnocom, the digital transformation of financial institutions implies the development of a process that includes three phases: coexisting, transforming and converging. Tecnocom has a value proposition that considers bimodality, that is, the need to coexist between the two worlds: the traditional and the digital that not only affects the technologies of the entity, but also the organization, the commercial system, the products and services.
According to Tecnocom, consumers are rapidly adopting new technologies which in turn generates a change in customer-supplier relationship models and work models. These users have become the technological leaders, very severe judges who demand and demand how companies should behave, in short, they are the ones who are defining the model of interaction with their suppliers.
The financial sector is no stranger to this digital change that is also taking place in a complex economic situation where interest rates are practically at zero, a rise in commissions, a redistribution of assets and liabilities worldwide. This situation has forced Financial Institutions to take very demanding and expensive regulatory-regulatory and supervisory measures, but which have undoubtedly been necessary to recover credibility and confidence in the system.
To complete the scenario, it is worth mentioning the appearance of new actors, very close to new technologies, which act in what is known as Shadow Banking, who are taking advantage of the digital presence of consumers to capture them, entering niche businesses: means of payment, transfer services, etc. "Unleveraged businesses," explains Mario Yañez, Head of The Development of Banking Solutions at Tecnocom, "which can amount to 8% of the gross profit of the entities." It should also be considered that the new digital actors understand perfectly what the new value chain is and, without undermining the value of the bank, they simply position themselves as tractors of the same and if the entity does not react, it could be relegated to the final part of the chain, as a commodity, manufacturer and support of the financial product.
Clearly what we have to decide is how to transform the financial system or how to help financial institutions transform themselves in this digital environment. And there are several factors to take into account, the first is digitalization, being able to convert our processes, our organization or reconvert them to be able to function in a virtual, digital and automated way. Secondly, we have to consider the concept of onminacanality and be present in all channels. And thirdly, the relational model, the way we know and relate to our customers. For this, analytics is very important and consider that these three factors are the DNA of these new players, DNA that an Entity has to be able to incorporate into its way of life, its way of working and its way of operating.
In short, the combination of financial services and new technologies is causing an irreversible change of course in the sector. "As in other sectors in the past," says Yañez, "the financial industry is living its particular 'Napster moment'. " The question is , continues Yañez, whether it is necessary to completely transform banking. Today the reality is that most of the clients of the entities are not digital, but it is necessary to attend to the "millennials" and the customers of the future. These segments, although currently in the minority, are the ones that will set the tone in the coming years."
The great challenge is not to imitate these players, but to break the traditional vision of the value chain to turn it into an ecosystem, we talk about competing and collaborating and therefore what is already known as "Coopetición". In the immediate future we have to work to be able to establish these processes with other companies, with other entities, with other industrial sectors that in some cases will be our enemies and in other cases will be our collaborators. This is something that Financial Institutions will have to admit as part and as a rule of the game. Logically, by opening the door to processes, by establishing models of cooperation and relationship with other industrial environments, safety becomes a critical factor.
A challenge that goes through the application of some principles: open and make flexible the system architectures to ensure that our core platform system is prepared to work in block mode or allow working in a collaborative environment with other ecosystem partners; capitalize on knowledge and go to a model that facilitates the entry of technological and business knowledge within our own organization and experience that exist, establish new models of alliances with new partners, define the truly differentiating values, focus on the client, are key aspects to work on in the digital transformation process.
Tecnocom's value proposition
The value proposition is called "Global Banking", a complete core banking platform based on new architecture, both business and technological, which allows Financial Institutions to adapt to the new needs of the digital environment without undermining the current needs, both business and regulatory or regulatory compliance, that are needed in each of the entities. A value proposition that is based on the experience of more than 30 financial institutions in Spain and some European countries that have allowed over the years to create a core platform, with a service-oriented architecture and based on new technologies that allow us to cover 100% of the needs of the business products that entities can currently demand.
The greatest benefits of the platform are based precisely on the understanding of this new ecosystem and the new working model that we are going to find. On the one hand, that we have a platform that can provide 24x7 services, that can be anywhere in the world, at any time, at any time, providing financial service in a complete way, but at the same time distributed that meets all the needs of multilanguage, multicurrency, multiplatform etc., which allows us to really adapt in a simple and fast way to the business context of each entity, in each place where the entity develops its business. That allows us to offer a service in a simple, fast way and to be able to scale according to the growth or evolution of the business of the entities.
In addition to the technological or functional characteristics that surround the core banking platform, we have had to provide Global Banking with a flexible and open business model, prepared to operate in this type of ecosystem. From a platform that allows us to provide the service in pay per use, in outsourcing or until reaching a BPO, either 100% of the core banking platform or any of the modules that make up all this core or all this service platform.
