Strengthen your case for banking technology investments in 2025
Technology investments are now make-or-break decisions for the success and profitability of financial institutions. As we approach 2025, the industry is witnessing a significant shift towards increased technology spending, with a focus on deposit growth, operational efficiency and niche market targeting.
With so many competing priorities, how do departments successfully advocate for their specific technology investments?
As financial institutions head into budget season, this is a particularly important question. Submitting generic requests with information about a technology or solution is no longer enough.
To win over decision-makers, teams must demonstrate clear ROI. By showing how a proposed technology aligns with the institution’s strategic goals—driving growth, efficiency and customer satisfaction—department leaders can build a persuasive case for increased tech investment.
Getting budget approval
Technology is crucial for banks to remain competitive and efficient. But securing budget approval for these investments is a different challenge altogether—not quite as easy as Jerry Maguire’s famous “Show me the money!”
To successfully advocate for increased technology budgets, department leaders must present compelling, data-backed proposals. It’s no longer about getting the technology for innovation’s sake (“Show me the technology”); it’s about proving that the technology can deliver real results (“Show me the ROI!”).
Align with institutional goals & offer detailed projections
The first step in making a persuasive case for technology investments is to clearly demonstrate how the proposed technologies align with the organization’s broader strategic objectives. This alignment helps decision-makers understand the value of the investment in the context of the company’s overall vision and goals.
Frame arguments in terms of business outcomes and financial benefits; focus on how technology can directly impact revenue growth, customer experience, and operational efficiency; and avoid technical jargon and use concrete examples to illustrate potential benefits.
Decision-makers are also more likely to approve investments when presented with clear, data-driven projections of potential returns. Teams should therefore develop comprehensive ROI models that account for both tangible and intangible benefits. For instance, you should include factors such as cost savings from improved efficiency; potential revenue increases; enhanced customer satisfaction and retention; and improved employee productivity and satisfaction. What is the “so what” of the investment?
Demonstrate solutions to specific pain points with a clear implementation plan
To win over budget, teams must also identify and articulate the specific challenges or inefficiencies within the organization that the proposed technology investments will address. By highlighting these pain points and presenting concrete solutions, you can build a compelling case for the necessity of the investment.
This includes conducting thorough analyses of current processes and systems; gathering feedback from employees and stakeholders; and presenting case studies or examples of similar organizations that have successfully implemented the proposed technologies. This is your chance to prove how this technology will work and the benefits of the investment.
Additionally, a well-defined implementation plan can help alleviate concerns about the feasibility and potential disruptions associated with new technology investments. Develop a detailed roadmap that outlines timelines for implementation; resource requirements; training and change management strategies; and measurable milestones and success criteria.
Highlight the risks of non-investment
While it’s important to focus on the potential benefits of technology investments, it’s equally crucial to highlight the risks of not investing. This can help create a sense of urgency and demonstrate the potential consequences of inaction.
Consider factors such as the potential loss of market share to more technologically advanced competitors, increased operational costs due to outdated systems, reduced ability to attract and retain top talent, as well as compliance and security risks associated with outdated technologies
Showcase real-world success stories
As mentioned earlier, presenting concrete examples of successful technology implementations in similar organizations can significantly strengthen your case. These success stories provide tangible evidence of the potential benefits and help decision-makers visualize the impact of the proposed investments.
By following this strategic approach and presenting a comprehensive, data-backed proposal, department leaders can build a compelling case for technology investments. Remember to tailor your arguments to the specific concerns and priorities of your organization’s decision-makers, and be prepared to address potential objections with a factual response.
For example, a team was trying to justify an increased budget for its bank’s digital transformation initiative. Rather than laying out generic examples, it told the story of another very similar bank that recently implemented a comprehensive digital banking platform to enhance the customer experience and streamline operations, emphasizing the impact.
After 18 months, the bank experienced a 30% increase in mobile banking adoption, 25% reduction in branch transaction costs, 15% improvement in customer satisfaction scores, and a 20% decrease in customer service call volume. These outcomes not only improved the bank’s efficiency but also positioned it as a leader in digital banking services in its market, attracting a younger demographic and increasing overall market share by 5%.
Another example is a $5 billion asset bank that elevated its existing digital banking platform with personalized financial guidance. Within mere weeks, the bank saw a 48% adoption rate among mobile users, nearly double the industry average for new features; it logged a 20X increase in digital savings account opportunities compared to traditional methods; tracked a 93% funding rate for newly opened savings accounts; could claim a 15% increase in overall deposit growth; and cut customer service calls related to financial guidance queries by 30%.
This implementation not only improved customer engagement but also significantly boosted the bank’s deposit growth strategy – a key area of focus for the bank’s board of directors.
By showcasing actual stories with real results, teams have a better chance of securing a greater share of the budget. Leading with these stories may be what makes the difference.
As we head into budget season, technology investments are essential for the survival and growth of financial institutions. To secure budget approval, department leaders must strategically align proposed technologies with the organization’s broader objectives, demonstrating clear ROI projections that encompass both tangible and intangible benefits. By addressing specific pain points, presenting concrete solutions, and outlining a detailed implementation plan, teams can alleviate concerns about feasibility and highlight the risks of non-investment.
However, the real game-changer is presenting real-world stories of banks that have effectively implemented the technology you’re advocating. These serve as compelling evidence of the potential impact and just maybe what wins your case.
Parker Graham is Founder and CEO of Finotta.
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