Typically, in most banking environments there are executives (SVP, VP) who provide more of the strategic level of IT Leadership and the AVPs and various managers who supply IT Management functions usually with a technology background. Majority of banks are very title centric and areas of accountability are divided.
I feel that most of the FI’s out there have Banking Execs trying to be a IT managers, causing them to outsource many task that should be keep in house. However my FI is fortunate enough to have a ITO that its a true IT Professional.
I was at a ICBA (Independent Community Bankers Assocation) conference this week and we had a IT roundtable and this topic came up. A number of the ‘IT’ folks in the room were converted bankers. And some of them didn’t even necessarily want to be IT people, just mandated that position. It shows a breakdown in executive mgmt understanding the role and value that IT can play. Again, they think of IT as only a cost center, sad really.
Like Josh, I came from a technical background and migrated up to management in the IT Director position. My technical experience is what contributes to my ability to make sound management decisions. Similar to a loan officer that manages a portfolio of loans and evaluates them based on risk/reward, the bank’s IT Director manages a portfolio of IT assets and should evaluate new projects in a like fashion. Would a bank ask someone in an operations position to manage their loan portfolio or become a commercial lender? Of course not – how would they make risk/reward decisions on loan assets without fully understanding the complex credit situations that can accompany such a task? In like manner, how are individuals with little or no technical IT experience supposed to weigh out cost/benefit of managing a bank’s IT assets? I realize that sometimes this is not the case, but I believe that the best managers are the people who mastered the vocation that they are managing.
I agree with Brad’s answer, as I have seen it in the bank in which I work. Prior to me, the IT Administrator was most definitely NOT an “IT” person… she was given that position after our FI outsourced the data processing to DCI (prior to using DCI, our FI was using an old Banker II Unix system; the former IT Admin was the manager of the proof and data processing area; a stark contrast from our now-Windows based system).
I came on board with the bank in 2005; first as the assistant network administrator, then as the Manager of the department. In my experience in dealing with other community banks, it seems that a lot of them have “converted bankers” that are maintaining the IT infrastructure but who have no real in-depth knowledge of computers.
I think the best of all worlds is having an IT manager who understands technology as it relates to the bank and its overall strategic goals. I tend to agree with Brad’s point that time is not on the side of those with a banking background who want to learn IT. Conversely, I think we all know some very good 1s and 0s people who may not fully understand the strategic function of IT. This is why every bank needs a strong IT committee comprised of both ends of the spectrum with several folks in between.
I came to the bank with an IT background, but after a couple of years, my president sent me to banking school. I now sit in on as many committees as I can, even if I am not a member, so that I can understand where the needs are and direct my department accordingly.
Incidentally, my president doesn’t even have a computer and has absolutely no interest in learning how to use one, but he is one of the most pro-technology bankers I’ve met because he understands how critical solid IT infrastructure and operations is to his bank’s success. I rather suspect that my situation is not a common occurrence, but I do think, and this is purely anecdotal, that the value of IT is rising in the minds of executives across our industry.
Josh C.
I’m an IT professional that has learned (learning) banking.
James D.
Typically, in most banking environments there are executives (SVP, VP) who provide more of the strategic level of IT Leadership and the AVPs and various managers who supply IT Management functions usually with a technology background. Majority of banks are very title centric and areas of accountability are divided.
JB D.
I feel that most of the FI’s out there have Banking Execs trying to be a IT managers, causing them to outsource many task that should be keep in house. However my FI is fortunate enough to have a ITO that its a true IT Professional.
Brad G.
I was at a ICBA (Independent Community Bankers Assocation) conference this week and we had a IT roundtable and this topic came up. A number of the ‘IT’ folks in the room were converted bankers. And some of them didn’t even necessarily want to be IT people, just mandated that position. It shows a breakdown in executive mgmt understanding the role and value that IT can play. Again, they think of IT as only a cost center, sad really.
Chris R.
Like Josh, I came from a technical background and migrated up to management in the IT Director position. My technical experience is what contributes to my ability to make sound management decisions. Similar to a loan officer that manages a portfolio of loans and evaluates them based on risk/reward, the bank’s IT Director manages a portfolio of IT assets and should evaluate new projects in a like fashion. Would a bank ask someone in an operations position to manage their loan portfolio or become a commercial lender? Of course not – how would they make risk/reward decisions on loan assets without fully understanding the complex credit situations that can accompany such a task? In like manner, how are individuals with little or no technical IT experience supposed to weigh out cost/benefit of managing a bank’s IT assets? I realize that sometimes this is not the case, but I believe that the best managers are the people who mastered the vocation that they are managing.
Will E.
I agree with Brad’s answer, as I have seen it in the bank in which I work. Prior to me, the IT Administrator was most definitely NOT an “IT” person… she was given that position after our FI outsourced the data processing to DCI (prior to using DCI, our FI was using an old Banker II Unix system; the former IT Admin was the manager of the proof and data processing area; a stark contrast from our now-Windows based system).
I came on board with the bank in 2005; first as the assistant network administrator, then as the Manager of the department. In my experience in dealing with other community banks, it seems that a lot of them have “converted bankers” that are maintaining the IT infrastructure but who have no real in-depth knowledge of computers.
Brad G.
Decided to expand a bit further on the topic on my personal blog, enjoy. I’m quite proud of my title:
Banking Executives – Stop being stupid about technology!
Would love to hear you all’s comments.
Richard B.
I think the best of all worlds is having an IT manager who understands technology as it relates to the bank and its overall strategic goals. I tend to agree with Brad’s point that time is not on the side of those with a banking background who want to learn IT. Conversely, I think we all know some very good 1s and 0s people who may not fully understand the strategic function of IT. This is why every bank needs a strong IT committee comprised of both ends of the spectrum with several folks in between.
I came to the bank with an IT background, but after a couple of years, my president sent me to banking school. I now sit in on as many committees as I can, even if I am not a member, so that I can understand where the needs are and direct my department accordingly.
Incidentally, my president doesn’t even have a computer and has absolutely no interest in learning how to use one, but he is one of the most pro-technology bankers I’ve met because he understands how critical solid IT infrastructure and operations is to his bank’s success. I rather suspect that my situation is not a common occurrence, but I do think, and this is purely anecdotal, that the value of IT is rising in the minds of executives across our industry.