Pragmatic Guidelines for Banks to Thrive in Digital Transformation

Banking CIO Outlook | Monday, August 05, 2019

Today's digital technologies are a lot to consider as digital transformation is becoming a priority for banking organizations to stay ahead of the digital curve.

FREMONT, CA: As today's banks plan for the future, their focus is being divided between the new banking technologies and the forces of disruption. This complete digital transformation is much more than just about providing online and mobile functionality. Conventional banking providers need to combine digital speed and convenience with human interactions. To stay focused banks may want to slow down and consider specific guidelines to digital transformation. The pragmatic guidelines below summarize it better.

• Strategic Focus and Alignment

It is vital to start with the understanding that digital transformation is not just an upgrade project but an ongoing process and a new way of doing businesses. Because it is a transformation of processes, roles, and culture, banks should begin with understanding and help share it across the organization. Change needs a lead that can help show how the realignment will help unlock growth, scale, and business objectives.

•  Operate to Innovate

With operate to innovate, the bank uses cost optimization and performance enhancement throughout the organization to make transformation self-funded. Given that digital transformation becomes something that helps banks both operate and innovate. Right business care is the start of this approach. For this, banks need a self-sustaining governance model across the executive team, where they support each other's role in the mission.

•  Reinventing Customer Journey

Banks need to determine what matters most for the customers and then work to improve the experience relentlessly. The ultimate goal is to digitize the consumer journey from start to finish completely. Digitized journey makes consumers happy and frees up staff for more valuable tasks while saving the financial institution money by streamlining processes.

•  Prioritization and Roadmap

It is essential to prioritize transformation efforts. The digital transformation roadmap can determine the success of the process. It is necessary to refresh that plan based on the environment continuously. Maintaining momentum and sustainability becomes pivotal here, which will ensure that the operating model includes long term support for transformation.

Following the guidelines above can help banks ensure that their digital transformation makes progress.

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