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Bank 3.0 : What’s the Holdup?

Challenges bank might face to hold back technology innovation
businesswoman hand holding a phone with mobile wallet onlain sho
Nowadays people are getting used to use bank service via all kinds of digital channels, such as online websites or apps. Bank 3.0 is an inevitable trend as the evolving of technological advancements. Instead of walking into a physical bank branch, waiting in a long line to open an account or deposit money, consumers use banking services much like they shop online. From bank management’s perspective, moving toward digital services could also help to branch out touch points of reaching more customers but reducing operating costs.

However, what are the constraints to hold back the innovation of bank 3.0? Following are some unspoken challenges:

High IT security requirements: The requirement of accurate financial numbers, near real-time system updating frequency, and high firewall security in banking industry is much higher than other businesses. Bank IT departments tend to be very cautious of any new upgrade within its current operating system. They will ask for formal documentation to thoroughly understand technical details before rolling out to the organization, which will help reduce unexpected “surprise” and ensure compatibility with existing technology after implementation.

Paradigm shift in mindset: Besides technical issues, the mindset of some managers remains traditional. Some are unwilling to embrace the digital banking concept. It’s difficult to transform the whole organization immediately. Evangelizing the old schools gently about the new trend could be the best way to convert people.

Organizational politics: It’s never easy for an enterprise to develop new processes across multiple divisions without a long painful transition. The larger the organization is, the tougher the change would be. Therefore, how to implement the new technology smoothly is truly a leadership challenge internally that solution providers could do little as an outsider.

  By Ethan Li 
  Project Manager


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