Today’s digitally savvy banking customers demand immediacy, ubiquity and mobile connectivity for their financial needs. Banks can’t do what they did previously otherwise they’ll end up in the industrial graveyard alongside the Nokias and Kodaks. Technology has enabled banks to address customer demands but with it they’re more prone to disruption – cyberattacks and loss of critical services.
How can banks stay on top of operational resilience, security and sustainable revenue growth in an industry that’s been set up for stability and rigidity and still keep up with the inevitable tempo of change? It’s a fundamental challenge. Aside from driving changes, technology also provides opportunities to deliver robust risk management with stronger operational resilience capabilities.
The Bank of England defines operational resilience as ’the ability to prevent, respond to, recover and learn from operational disruptions to services, to survive and prosper, and not cause harm to customers and the wider market”. The regulators need a ‘step change’ to address the issues.
Dassault Systèmes, the 3DEXPERIENCE Company, with 3 decades of helping clients in other industries simulate, visualize and optimize business operations using our 3DEXPERIENCE Platform and digital twins, has brought that experience to Financial Services. How can this approach strengthen protection for the banks’ customers, ensure institutions can withstand external threats and disruptions and protect the economy?
Our 3D modelling approach is used as the standard in manufacturing to stress test products prior to launch – from building cars, aeroplanes, medical devices and to even city construction. For example, our “Virtual Singapore” project, a 3D twin of the city, allows stakeholders to experience and interact with the virtual city so they can understand first-hand how it works and evaluate how it can be improved.
It can help to strengthen operational resilience by simulating the impact of changes to policies, processes, and products before they’re implemented. This allows an institution to better understand organizational performance in real time and significantly strengthen product service and delivery. It also can potentially strengthen trust in the bank and the banking sector, as well as reducing costs which are passed onto stakeholders.
Dassault Systèmes’ help you to connect the dots. With 3D modelling it’s easier to see the big picture and visualize the problems that need to be solved across all levels – from the customer, to a group and then to the industry. It allows for stress testing to ensure the best approach is taken – gleaning insights and conducting impact analysis so you can learn from those impacts across the whole system. This approach is standard in other industries – whether it’s for stress testing a car or plane. The same approach should apply to a bank.
By automating the processes, as they do in manufacturing, financial institutions can deliver change faster and more effectively ensuring digital continuity and operation resilience to allow banks to better take care of their customers. They can ensure services and products are always available. The knock on effect means banks are able to eliminate the risk of harm to an institution, prevent failure and an inability to meet shareholder obligations. As a consequence of keeping customers safe, institutions will be more efficient and better positioned to make stronger business decisions to support sustainable growth. This then has a positive impact on the economy.