How software helps smaller banks to better compete
There are a number of software applications that can help small institutions to compete with larger ones. The use of financial software can help modest financial institutions become more active in areas, such as investment, that were traditionally controlled by larger banks. There is no reason why smaller banks can't compete if given the right tools. They often have a better return on equity, lower overhead and are in better touch with their customers, which makes entry into new fields relatively easy.
Digital analytics has also reduced the need for specialized skills, such as quantitative analysis. This doesn't mean that just any bank employee can now get the best out of big data. It does mean that smaller institutions can now engage in analysis that is equal to larger institutions with a fraction of the analytical team it once required.
The most recent cloud based systems enable smaller institutions to manipulate date and do analytics with the same attention to detail as larger organizations. This means that smaller banks and credit unions are no longer prevented from operating in areas that were once reserved for larger players.
Digital technology cuts down on both time and effort. What once required an airplane hanger sized building full of drafts people and engineers, can now be accomplished by five or six individuals and some CAD software. The same is true across the business world. IT has already changed the marketing ecosystem and put many small businesses on equal footing with larger ones. It is transforming business models worldwide and opening the door to unique products and services. Banks, large or small, can now make better financial decisions and assist their customers in new and profitable ways.