Blast from the Past-The Never-Ending Story of Banking Transformations

OST Weekend Thoughts (11 Jan 2025)

Ah, the good old days! Before AI was making headlines, before Covid-19 sent us all scrambling, and way before "transformation" became a mandatory part of every job description, the banking industry was already a hotbed of disruption, change, and yes, even transformation.

it's 2004. I'm a fresh-faced newbie in the banking world, navigating a sea of acronyms and jargon. Agile? Transformation? Change management? Digital what-now? These buzzwords were foreign to me then, even though I was knee-deep in projects that would make a modern-day "transformation expert" weep with joy (or terror). LinkedIn was still in diapers, so nobody was around to give us fancy titles or share inspirational quotes about "embracing the chaos."

But embrace the chaos we did! Here are the top three disruptors that kept me on my toes from 2004 till 2020 (and occasionally pulling my hair out) in those early days:

1. The Core Banking System Upgrade: A Bank's Biggest Fear (and Most Frequent Headache)

Imagine trying to replace the engine of a jumbo jet while it's still in flight. That's basically what it's like to upgrade a core banking system. It's a massive undertaking that impacts every single employee and, unfortunately, almost always leads to some initial hiccups for customers. (Cue the angry phone calls and frantic emails.)

The key to survival? Anticipate as many problems as possible, assemble a crack team of firefighters to tackle any unexpected fires, and pray that the dust settles quickly. Because once it does, everyone starts to see the benefits – faster transactions, improved efficiency, and happier customers (hopefully!).

But even though core banking upgrades are terrifying, I've never heard of a bank going belly-up because of one. It's like that scary roller coaster you ride with your eyes closed – it might be terrifying, but you always come out the other side (slightly disheveled but alive!).

2. Credit Systems: The Ever-Evolving Beast

Credit review and origination systems are another constant source of disruption in the banking world. I've been involved in countless automation and transformation projects in this area, starting as a newbie tester who quickly became notorious for logging the most "tickets to resolve" during user acceptance testing (UAT). (Hey, finding bugs is an art form, okay?)

The good news is that these systems have come a long way. With the right fintech partners and a bit of luck, you can achieve wonders in terms of efficiency and customer experience. The bad news? Technology evolves at lightning speed, so these systems have a shorter shelf life than a carton of milk. You're constantly upgrading, replacing, and tweaking, just to stay ahead of the curve.

3. Centers of Excellence: Centralized or Decentralized? That is the Question!

Centers of Excellence (COEs) have been a major disruptor, especially for operations teams. In my experience, banks love to experiment with COEs, constantly shifting between centralized and decentralized models. I've led teams in both scenarios, often feeling like I was playing a game of organizational ping-pong.

What I've learned is that these attempts often lacked a people-centric approach, at least initially. There were bumps along the road, misunderstandings, and the occasional "lost in translation" moment. But hey, that's all part of the fun, right? (Maybe not for the employees involved, but let's focus on the positive.)

So, there you have it – my top three organizational disruptors from the past. And guess what? They're still wreaking havoc today, just in different forms and with varying degrees of intensity. It's a never-ending story of change, adaptation, and the occasional dose of chaos. But hey, who said banking was boring?

Now, it's your turn! What are your top three organizational disruptors from the past that are still making waves today? Let's share some war stories and have a good laugh (or cry) together.