Banks Can Succeed in the Tech Shift: New Report Shows the Way
Many European banks need to modernize their card systems to meet new regulations, growing fraud risks, and the high costs of older IT platforms. The stakes are high – from billions of dollars and customer trust to operations that must never stop. A new report from Tietoevry Banking reveals what it takes to succeed in this transformation.
The Four Pillars of Successful Transformation
When a Nordic bank needed to replace hundreds of thousands of payment cards in just a few weeks, the entire machinery was put to the test, from systems and security to customer communication. The mission was completed smoothly and is now used as an example in Tietoevry Banking’s new report, “Transforming the card value chain for leading banks.”
The report is based on interviews with several major banks in the Nordic and Baltic regions, as well as Tietoevry Banking’s own experts, with experience from modernization projects involving over 26 million cardholders. The aim: to explain why some projects succeed – and others don’t.
According to the report, the most successful transformation projects rest on four cornerstones:
- Product: Products need to be as reliable as they are flexible, and ready to grow with customer demands.
- Process: Processes must reflect each bank’s own culture and governance.
- People: The people, both at the bank and the partner, are the ones who make the transformation journey work in practice.
- Partnership: The partnership determines how quickly problems are solved when the pressure increases.
Mario Blazevic, Managing Director at Tietoevry Banking, recognizes this from working with Nordic banks:
“We work closely with the banks and use experience from over 130 customers to reduce risk and cost. Through joint forums, we share learnings that allow all our customers to benefit from what works best,” he says.
Increased Pressure on Banks
New payment methods, increased fraud risks, and stricter regulations mean that more and more banks need to replace systems that in some cases have been in operation for several decades. At the same time, external industry analysts warn that there are risks that banks’ transformation projects may fail, often due to poor governance or unclear division of responsibilities.
The report emphasizes that successful banks place as much importance on governance and communication as on technology. They invest time in joint decision-making models, ongoing dialogue, and in creating consensus around the goals even before development starts.
Mario Blazevic emphasizes the importance of understanding the customer’s business in depth:
“We conduct workshops together with the banks to better understand their products, user experience, and internal processes. This is an important part of creating a common understanding and reducing the risks in large projects.”
Experiences from the Field
The report shows the same pattern in project after project: clear processes and open communication make a difference. When banks and technology partners work closely together, the change can happen without affecting the customer experience.
At the same time, the relationship between banks and suppliers is changing. Increasingly, it is about partnerships rather than the purchase of services, where banks and technology companies develop solutions together.
“The biggest part of these programs is really about people, how we can communicate openly and create an environment where both parties dare to be completely transparent,” says Mario Blazevic.
Tietoevry Banking describes modernization as a process that is ongoing throughout the industry, not a temporary trend. The report emphasizes that technology is the foundation, but that success is determined by the interaction between people, organizations, and systems.
“We hope that the report helps banks ask the right questions, build the right partnerships, and succeed where others struggle,” says Mario Blazevic.
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