Fourth segment of a Conversation with Rakesh Kant, an expert on financial and reporting systems, in Lucknow, India, April 15, 2018.
Here Rakesh responds to the question what is the hardest part of solving the transformation of financial systems problems. The answer is the changes to existing processes and cost of implementation.
Our financial systems are incredibly efficient. Cost per transaction can be a faction of a penny. They have been tuned over decades to achieve that cost. They have become that way because initially the cost of the computer systems used to automate them were so incredibly expensive–a natural motivator for creating the efficiency we take for granted today.
So the challenge in innovation in this space means the innovation must not only provide significant new benefits; it must also do so efficiently. And that efficiency includes implementation and conversion costs. Our systems are highly networked, incredibly reliable–and very old.
Innovation is coming that will change the way they work.