We’re experiencing a period of unprecedented technological change and innovation. New technologies, such as AI, cloud platforms, open finance and embedded financial services, are developing at a speed we’ve never witnessed before and transforming how institutions operate, deliver value and compete. For the UK financial sector, however, which is already dealing with economic uncertainty, a rapidly evolving regulatory environment and dynamic customer expectations, keeping up with this pace of change is becoming a strategic imperative.
It’s both an exciting opportunity and a real challenge, but many institutions remain tied to delivery models that are too slow, internally siloed and too rigid to respond effectively. This can result in a widening gap between what’s technologically possible and what’s operationally achievable.
This tension, between speed to market and organisational control, is the new battleground for competitiveness. And without a robust, adaptive approach to change management, financial organisations risk becoming reactive rather than proactive, locked into a cycle of short-term fixes that inevitably result in long-term risk.
Speed vs control
Every financial institution faces a similar dilemma - how to move quickly without losing control. Bringing new services and products to market quickly is essential in order to stay relevant, but it can clash with risk management, compliance processes and legacy systems.
In the past, change programmes followed a linear path - identify a problem, define a strategy, build a business case, organise a team and implement the process over months or even years. However, that structure no longer fits today’s environment, where whole business models can be disrupted through the entry of a new competitor, a regulatory shift or a technological breakthrough. Sometimes all at once.
To deal with this, many businesses react to change rather than plan for it. They apply quick fixes - short-term solutions to get the process finished - while relegating bigger decisions to some point in the future. Over time, however, this creates a backlog of problems that become bigger, harder and more expensive to solve.
In response, institutions need change mechanisms which are not only stable and secure but also fast, flexible and iterative.
Change controls
Many financial institutions try to manage this complexity by tightening their control over operations. They centralise decision-making, add oversight and require more rigorous governance. And although these approaches are well-intentioned, they often slow down innovation and frustrate delivery teams.
The fact is that stability cannot come at the expense of agility. Too much control can create a bottleneck and frustrate progress. In contrast, adaptive governance models - those that allow decentralised experimentation within a clear strategic framework - enable speed without sacrificing accountability.
It’s also vital to rethink the concept of control. In fast-moving digital ecosystems, control is less about hierarchies and more about enabling responsive, data-driven decision-making at every level.
All of which means that change is no longer an isolated incident. It’s ongoing, constant and needs to be built into the very fabric of how organisations operate.
Rethinking change
How, then, can financial institutions redesign their approach to change to better meet the needs of today’s agile financial environment?
Small, regular steps
Rather than waiting for one momentous launch, the most successful organisations roll out improvements in smaller, more regular steps. This allows for more rapid progress, earlier feedback and fewer surprises.
System flexibility
Upgrading to more recent technology helps to make the necessary changes easier and quicker. More modern platforms are built with adaptability in mind so teams can plug in new tools, work with partners more effectively and respond to customer feedback without beginning again every time.
Team empowerment
When team members have the tools and the freedom to make decisions and test new ideas, they can move faster. This clearly doesn’t mean that they should ignore risks or regulations; it simply means making sure that those considerations are part of everyday decision-making, not something that happens at the end of a process.
A culture of learning
Organisations that encourage learning, experimentation and open communication between departments are able to adapt more easily. Change shouldn’t be something that’s done to people, rather, it’s something they participate in. Neither should it be the responsibility of a separate department. Rather, it should be embedded in the culture and capabilities of every team, but that requires investment in change leadership, data literacy and continuous learning.
A strategic opportunity
The rapid pace of change we’re living through is not a threat - it’s a strategic opportunity. And the institutions that embrace change as a core strength, not a necessary evil, will be the ones that will thrive and lead. They’ll be better positioned to attract top talent, deliver more compelling customer experiences and adapt, whatever happens next.
Conversely, the organisations that cling to legacy delivery models, continually firefighting, will find themselves in reactive mode when, not if, the next disruption happens.
Now, and in the future, those organisations that are speedy and proactive will be the ones that thrive. However, speed without structure can lead to disorganisation, so to prosper, financial institutions must design change with pace and combine agility with governance, innovation with resilience and urgency with intention.
It’s time to stop thinking of change as something separate from a business. Instead, leaders should embrace it as part of how they do business every day. Because, in the current environment, the ability to change isn’t simply nice to have, it’s essential.
If you’d like to discuss any of the issues we’ve looked at here, contact us for a confidential chat.
