Why financial institutions must use technology to adapt to the “new normal”

For financial service institutions, it is understandable to seek a balance between technological innovation and regulatory and compliance obligations.

However, as the current pandemic has shown, companies need flexibility and flexibility to adapt to rapidly changing conditions, and the right infrastructure is the foundation of their operating methods.

We must take a long-term perspective, because the current situation is unprecedented. In the next few months, the “new normal” that has been widely discussed is characterized by increasing attention to operational flexibility, the need to ensure employee safety and environmental adaptability, and accelerate the adoption of technological solutions and digitalization The workflow meets the needs of semi-remote labor.

The complication in this chart is that we are likely to maintain low interest rates for some time to come. This limits the ability of financial institutions to invest in these solutions. With what may become the worst recession in memory, lowering interest rates will drive financial services institutions to become more efficient, reduce silos, and give them a better understanding of how to achieve digital transformation.

Investment budgets may be cut, and continuing plans will need to realize value quickly.

This is where ServiceNow plays an important role. As we continue to release solutions specifically designed for financial services, we can help organizations significantly shorten the development time of new services-by giving them the ability to build things or create prototypes to optimize investment-instead of spending months thinking about business cases or detailed design.

ServiceNow has been working hard to help companies deal with the impact of Covid-19. The core of our efforts is a set of new features released as part of the Covid-19 customer service plan, designed to support our customers in managing the impact of the crisis while maintaining our commitment.

We have also been developing solutions for financial services because we are aware that this pandemic has brought unprecedented challenges to banks and insurance companies.

Dealing with the crisis and its “long tail”
One example is the new small business loan management released by our partner INRY based on ServiceNow Customer Service Management (CSM) technology. It is designed to help simplify the process of obtaining much-needed financial help for companies affected by the pandemic.

The application was developed directly in response to the challenges faced by many financial service providers in the United States in the large number of applications received from the SBA Payroll Protection Program.

The bank faces a very pressing problem, so it needs to build the application quickly. From the idea of ​​the application to the deployment with the customer, the entire development time is four weeks. The application can now be used immediately to help any bank or lender manage the large number of applications they are encountering.

Now, demand shifts from loan application to loan maintenance, in some cases forgiveness. The app is also designed to help banks manage the inevitable long queries, disputes and resolutions that these government programs may cause.

Digital transformation has never been more important. Those who can effectively utilize powerful technological solutions can promote an effective economic “rebound”, and organizations that accelerate the development of their digital strategies are likely to be the most resuscitated businesses.

With these new tools, ServiceNow is helping financial institutions find the required balance between optimized investment and the speed and flexibility required for the “new normal.”

Keith Pearson is the Senior Director of Financial Services at ServiceNow