Financial Services Industry Requires Enterprise Architecture Elevation in 2023

Enterprise Architecture (EA) has long been recognized as a critical component of business transformation, particularly in financial services. But what is the true impact of EA on transformative change? In a report by BizzDesign, a Gartner magic-quadrant leader in enterprise architecture software, the analysis sheds light on this question, providing valuable insights for leaders in financial services firms looking to drive meaningful change. of the report's key findings is that there is a significant gap between high and low EA maturity performers, with a 66 percent gulf across seven EA maturity dimensions. This finding means that financial services firms with mature EA programs have a clear advantage over their less mature counterparts in driving transformative change. In addition, the report identifies numerous opportunities for laggards to improve the organizational impact of their EA programs, such as investing in better governance structures and more effective communication with stakeholders.

But what does this mean in practical terms? First, the report shows that organizations with mature EA programs have a threefold agility advantage over their less mature counterparts. This agility is critical in the financial services industry, where rapid adaptation to changing market conditions is crucial for success. Mature EA programs enable organizations to respond quickly and effectively to market shifts, leveraging their existing technology assets to drive innovation and deliver customer and shareholder value.

However, less mature EA programs fail to influence on multiple levels. For example, C-suite executives and board members at EA maturity laggards were six times less likely to regularly consume EA content than their peers at EA maturity leaders, and EA maturity laggards were less than half as effective at influencing the technology decisions of agile teams. The lack of organizational cohesion highlights the need for financial services firms to invest in building mature EA programs that can effectively communicate the value of EA to all levels of the organization.

The report also reveals that progress is required for EA to facilitate innovation more fully. For example, only 20 percent of all respondents fully agreed that their EA program delivered faster innovation and faster time to market. In addition, just six percent of respondents claimed that EAs were always included in agile teams and had the authority to influence their technology decisions successfully. As a result, technology organizations should acknowledge the significant room for improvement in how financial services firms approach EA, particularly when integrating EA into agile development processes and community building.

Finally, the report highlights the importance of integrating EA into security, risk, and compliance programs. Eighty percent of top-quartile EA maturity organizations said that security, risk, or compliance managers consumed EA content monthly or more often, compared to just 26 percent of EA maturity laggards. Once again, the analysis suggests that financial services firms with mature EA programs require improved organizational alignment to manage risk and compliance, which is critical in an industry with high regulatory scrutiny.

In conclusion, the BizzDesign State of Enterprise Architecture 2022 report provides valuable insights into the impact of EA on transformative change in financial services firms. The report underscores the importance of investing in mature EA programs that can effectively communicate the value of EA to all levels of the organization, integrate EA into agile development processes, and leverage EA to manage risk and compliance. Financial services firms that take these steps will be well-positioned to drive meaningful change and deliver value to customers in an increasingly competitive marketplace.