How the agile approach can help BFSI

Today financial institutions are changing widely in terms of technology platforms, payments processing systems, economic systems, and asset and risk management systems. Banks are rapidly growing in transactions and banking processes in delivering services to customers from m-payment, trading via mobiles, e-payment, and digital banking services. The banking platforms and financial firms have used agile enormously in recent years, keeping track of accounts, balances, interest rates, and economic trends. It is challenging to sustain revenue growth and retain the market in this challenging market condition. With the rapid competitive landscape, IT departments within financial firms are improving efficiently with the Agile Methodology in Financial Services. It is also helping to keep up the speed and maintain controls on cost and capital outlays.

Adopting Agile to your business to deliver high value, create software that meets end-user goals, and reduce risk when business applications are developed. This agile involves improving software merchandise, but methods are also known throughout the team to achieve faster and grander business goals. The agile developments lead to the iterative manner of construction. With a clear focus, if any problems occur or modifications are required in the middle of the plan, agile will help you address them quickly. Before testing a final product, agile principles enable organizations to follow a clear-cut, data-driven strategy and continuously test and discover.

How is Agile development reacting in the real banking world?

Agile is new to the banking IT business. From the advanced rules to alliances and assets, agile core principles banks are accessing the data beginning with complexities not covered by many of their new tech rivals. The legacy methods will evolve with new policies and built-in more current languages.

How to use Agile-

Agile will help banking firms to succeed. In banking, agile allows faster development of change. It changes according to end-user demands. Agile manifesto and principles were formulated for software development processes. It must integrate the strategy, structure, people, processes, and technology of critical elements of the office. This requires flexibility; methodical processes can be counterproductive.

Benefits of adding agile

There are many success factors for digital transformation in the banking sector, and nothing is more important than agility. It applies under five underlying principles.

Understanding the picture

For a bank, digital transformation is a milestone to achieve, and it needs to be released incrementally. Understanding the picture helps the agile team identify what steps to take to achieve the desired results. The agile collaboration will with business units to uncover challenges and brainstorm solutions to execute them. Agile is used potentially in front-to-back digital transformation, including lending and customer onboarding. It also involves moving from traditional models to featuring functional departments like sales, product management, marketing, It, operations, etc.

Product driven mindset

Agile is a project delivery concept more than an IT concept. It represents the new, enterprise-wide mode of thinking of customer-centricity, business-driven, and outcome-oriented changes. It demands business values from every project.

Clear outcomes

Digital transformation will give clear outcomes, and agile helps to provide impressive results. The business values facilitate an outcome-driven mindset; frequent release cycles provide continuous visibility to the business. Banks opt for an agile increase in market coverage, business expenditure, and revenue growth. It helps add value-added services like pre-approved loans, proactive offers, and new services like lifestyle services.

Demand DevOps – based delivery

Agility is all about creating the lifecycle of product development and delivery. A vast defined technology and tooling ecosystem accelerate the cycle of utilizing DevOps. The continuous feedback from end-user to business will help achieve new capabilities and high-quality products.

Innovation and responsibility

Agile helps organizations foster a culture of experimentation and innovation. Initiatives like hackathons, ideations, or immersive learning experiences based on the principles of failing fast, focused on cross-functional collaboration, help companies stay ahead of the innovation curve.

Time takes for a transition to Agile

We have seen these transactions take their own time from a few months to ever. Suppose it is a pilot project with property and casualty which went well. Various banking organizations moved to Agile; they still struggle to manage the transition and implement Scrum successfully. And on the other side, some of the other financial institutions implemented Agile successfully; they are driven by agile and scrum for their largest comments in a very reactive environment where customers were driving the dates. In many organizations, this paves the way for adopting Agile as one of the project approaches.  Where the organization can implement structural and procedural processes supporting Agile (e.g., resource allocation models, portfolio management, backlog prioritization, etc.), widespread adoption of Agile and true Transformation can begin.

The key points need to be addressed in Agile adoption

  • The determining factor of culture is whether some products can be delivered using Agile. It is ok for some projects to use Agile while others do not.
  • Well-documented and well-managed projects (compliant with PMO and other rules, including SOX regulations) can follow Agile. It is all about how we collaborate with the customer and less about the speed we deliver. There are sources: IDC – Worldwide Vertical Markets IT Spending 2010-2015.

In banking, the iterative method that is the hallmark of agile allows faster development of and change to digital banking programs in acknowledgment of consumer demand.

The failure rate of Agile adoption is much higher than the success rate. Organizations fail to figure out the failure despite doing everything correctly and following all the best practices. Today, financial companies face several challenges like performance failures, a lack of regulatory compliance, security vulnerabilities, and complex functionalities of the banking systems, among others. Ensure the transformation runs smoothly while creating exceptional customer experiences. Agile testing becomes necessary to validate end-to-end processes.