– Chris Labrey, MD of Econocom UK & Ireland
Even if or when the UK leaves the EU with a Brexit deal, businesses are still likely to feel much uncertainty. For instance, VAT payments on the import and export of goods and services to and from EU countries will change, while patents and IP may need to be re-examined. Beyond Brexit itself, businesses will face many challenges and changes as the UK re-negotiates its trade deals through the transition period.
The UK has already missed two leave deadlines and it’s now nearly three and a half years since the country voted in the referendum — far too long for businesses to adopt a ‘wait and see’ approach. Understandably, there is a hesitance among some organisations to invest heavily in new assets, such as technology. Indeed, the recent CBI PwC Financial Services Survey reports a decline in optimism, and many plans to launch new products and services are on hold. In addition, profitability is at its weakest performance since 2009.
However, investment is crucial to business survival. The same report details that banks are hiring at their fastest rate since 2006 to manage projects, regulations and to prepare for Brexit. Investment management is also seeing strong growth in capital expenditure, including IT, as the key drivers for spend primarily relate to increasing efficiency and speed.
Yet unless budgets are limitless, financial organisations will need to make decisions as to what IT investments have a higher priority over others. But what if there is a way to ensure that all technology requirements can be met, not just some? Subscription models could be the solution.
Embracing subscription and as-a-service models
Subscription and as-a-service models not only ease the burden of an upfront investment, but they also allow financial organisations to implement the latest technology while streamlining payments and minimising the risks of deployment. This strategy has many business advantages, such as:
Access to the latest technology
While large IT investments are carefully planned and budgeted for, sometimes decisions need to be made quickly as the latest technological and software developments are required to remain agile and stay ahead of the competition. With an as-a-service solution, there is no waiting game in terms of budget or capex; the technology can be added to the existing subscription and deployed within the organisation almost instantly.
Empowering users
In today’s working environment users — financial customers and employees — expect to have access to the latest technology. Otherwise, employees feel disempowered, demotivated and unable to do their job, while customers simply vote with their wallet.
The beauty of subscription and as-a-service models is that technology can be deployed and upgraded as it is needed — staff can be productive, and the customer experience isn’t impacted. These models are also versatile enough to include warranty and insurance services meaning that technology can be replaced quickly with minimal user downtime. Lifecycle management solutions can also be included to minimise the total cost of ownership.
Agile working
New technology is not only a productivity perk, but can also offer more flexibility, providing an added incentive to motivate employees and drive the business forward. This could mean working from home, or the use of shared mobile devices within the office, designed to facilitate collaborative working.
Subscription and as-a-service models allow new devices or platforms to be added on to existing contracts as employee numbers increase.
Planning for the future
With the UK’s future relationship with the EU remaining unclear, businesses are understandably putting off large investments. However, what is evident is that investment in new technologies is key in order for financial services organisations to remain ahead of the curve, agile and relevant in a competitive landscape.
Replacing, upgrading or installing new technology and software assets can be time-consuming, challenging and costly. In lieu of sign off for large standalone investments being available, subscription and as-a-service models are a viable way for financial businesses to spread costs over several years. In this scenario, capital expenditure is protected, whilst business processes and customer service are improved, empowering users and driving success in customer attraction and retention.
Therefore, in these uncertain political times, it is key for future success to find a trusted technology partner, who understands the financial sector and can support with the set up and management of new technologies to maintain growth. When implemented through a subscription model, this can allay concerns around budget and business agility.
