The world is constantly evolving and adapting to newer tech, changes, and understanding to take a step further. Gone are the days when human brains and physique got wasted over some mechanical tasks that machines could have completed easily.
Instead, we live in an age where we’ve to focus more on how to enhance the efficiency of those machines. Today, we no longer focus on doing repetitive tasks.
The same mindset has penetrated the finance industry for good. Finance authorities are no more blindly putting the legacy strategies to action. Instead, they are questioning them and changing them.
Eventually, change is becoming the new routine in the finance industry and proceedings. And in business terms, this change is known as agility.
Evaluations by experts suggest that this new practice is here to stay. How exactly, let’s see for ourselves.
Current Status
Before evaluating the change of concurrent changes, it’s essential to understand current industry trends. Most financial processes and investments are acquiring a digital status. Whether it is for an offline project or an online project, all of it is coming down to virtual currency, trade, and banking.
Thus, financial institutions are investing immensely in IT to make transactions and other processes seamless and smoother. They are deviating from their traditional perceptions and plans for such IT applications.
The question arises: why? What motivates these financial institutions to adapt to constant change? What encourages them to introduce newer virtual financing products (that does not follow the legacy of the company)?
Well, there are three main reasons for that. The traditional method of product development doesn’t involve or address:
- The countless risks involved
- End Users Feedback
- Progressive Approach
- Adaptability
To provide you a better understanding of this, allow us to elaborate.
In terms of risk, we talk about money, effort, and time involved. Plans now often get designed are the Cone of Uncertainty module (introduced by Steve McConnell). These involve a wide range of estimations. Say a project will demand $1000 for completion. Now, the finance department should keep themselves ready for completing this project anywhere between 60 percent of thousand dollars to 160 percent of thousand dollars. Do you see how it saves the company from engaging in a non-recoverable loss?
Similarly, traditional finance product development methods do not involve the users feedback. It introduces the product to the market only after successful completion of all five stages, which means you invest your money and effort with a blindfold on. You do not know how the audience will react.
Newer agile methods of finances counter this by involving users from the development stage only. Users can give their feedback along the way until you provide them with incremental releases, gradually making your way to a perfect and successful product. According to observations, the agile method is three times more successful than the traditional one.
Agile Methodology Advantages
Now, let’s consider the proven benefits of agility in finances.
Perhaps, one of the most prominent agile methodology advantages is the involvement of users from stage one of product development. Instead of adopting the waterfall approach wherein the user feedback comes into view at the end of the process and is practical of no use at all, the agile methodology makes effective use of user views.
It uses an iterative approach wherein the users say reinforces development. And the workforces indulges in improvisation. For each advancement, a new cycle comes into play starting from planning to monitoring. In this way, it builds an audience-specific product or service and also adapts better to the constantly changing market conditions.
In the waterfall approach, product development begins with a definite mission and plan. It has little room for improvement or suggestions. It proceeds with intensive planning and accurate measurements. Contrary to this, the agile approach is open to innovation, suggestions, and changes all along.
The agile methodology also stands against silos and encourages greater collaboration, integration, and participation. It encourages the financial teams to engage in retrospective and standup meetings to communicate ideas better. In this way, it also encourages sustainable development. Constant innovation keeps on adding to the value of the system or module.
Success Scale
Agility methods are only slowly making their way into the market currently. However, a few successful examples, such as that of Scaled Agile Incorporation, show us the true potential. It depicted:
- 20-50 percent increase in productivity.
- 25 – 75 percent increase in quality of performance and product
- 10 – 50 percent rise in employee engagement and satisfaction.
Plus, adopting and implementing agile methods right now is a super smart move, especially in investment portfolio strategy. The sooner you step in, the better results you will yield.
Final Thoughts
Given the success scale and growth potential of agility methods, it’s safe to believe that the financial industry is now stepping into a new era. As of yet, this new era promises both profits and skill development but only the future will unveil the truth. Let’s gear up and hope for the best!
