Agile IT Governance Required to Remain Responsive in Current Financial Services Market, Says Info-Tech Research Group

IT governance in financial services is fundamental to the smooth functioning and stability of the banking system.

TORONTO, Dec. 13, 2022 /PRNewswire/ - IT governance can work against an IT leader if it no longer aligns with or supports an organization's direction, goals, and work practices. In the financial services market, resource capacities and technological capabilities have not kept pace with organizational growth and expectations. To help organizations build agility into governance to keep up with change, global IT research and advisory firm Info-Tech Research Group has published a new industry blueprint titled Make Your IT Governance Adaptable – Financial Services.

IT governance is a critical and embedded practice that helps to align information and technology investments, risks, and resources with the organization's best interests. Effective governance ensures that the right technology investments are made at the right time to support and enable the organization's mission, vision, and goals.

"Success in a modern digital organization depends on its ability to adjust to the velocity of business and the evolving risk and regulatory landscape," says Donna Bales, principal research director at Info-Tech Research Group. "Practically, organizations will find success by shifting from a people- and document-oriented approach to a data-centric approach and embedding governance directly into products, services, or processes."

Info-Tech's research indicates that even though emerging and advanced technologies enable faster and more customized customer experiences, they come with added complexity in managing risks and data. A fully automated and embedded IT governance strategy can effectively meet the needs and velocity of digital organizations, regulatory requirements, and modern practices to drive success and value. However, their development is hindered by a lack of mature artificial intelligence (AI) and machine learning (ML) governance and ethical frameworks.

Info-Tech's research-backed blueprint suggests that financial services organizations must progress their governance maturity toward more automated governance. Ad hoc and controlled governance practices tend to be more rigid and are a poor fit for organizations that require higher-velocity delivery or use more agile and adaptive approaches. The stages of governance maturity are as follows:

1. Ad Hoc Governance: Governance that is not well defined or understood within the organization. It occurs out of necessity but is often not done by the right people or bodies.
   
   
2. Controlled Governance: Governance focused on compliance and hierarchy-based, authority-driven control of decisions. Levels of authority are defined and often driven by regulatory requirements.
   
   
3. Agile Governance: Governance that is flexible to support different needs and quick response in the organization. It is driven by principles and delegated throughout the company.
   
   
4. Automated Governance: Governance that is entrenched and automated into organizational processes and product/service design. Automated governance is empowered and fully delegated to maintain fit and drive organizational success and survival.

The firm's research suggests that IT governance in financial services is fundamental to the smooth functioning of the banking system. As intermediaries and conveyors of economic growth, financial institutions have a crucial role in supporting financial stability and the safe functioning of the economy. The use of novel technologies and an array of non-financial risk considerations have altered the risk and governance landscape. An organization's approach to governance needs to change to address emergent risks, make sound decisions, and maintain effectiveness.

To learn more, download the complete Make Your IT Governance Adaptable – Financial Services blueprint.

For more information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and Twitter.

About Info-Tech Research Group
Info-Tech Research Group is one of the world's leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and Industry analysts through the ITRG Media Insiders Program. To gain access, contact [email protected].

SOURCE Info-Tech Research Group