Measures to put the digital transformation of banks back on track

Main visual : Measures to put the digital transformation of banks back on track

The survey comes from the Digital Banking Report. The report finds that the second wave of digital banking, where technologies are being rolled out across departments is not keeping pace with the first phase where technologies are selected and on-boarded. This indicates there are cultural factors impeding digital transformation. A solution to this is with the use of cross-functional teams to breakdown legacy silo perspectives.

Digital technologies to change the customer experienceWith technologies, artificial intelligence and automation have begun to be applied. The next phases are likely to include greater use of cloud, analytics and probably blockchain, to assist with data gathering and assessment. In addition, both the Internet of Things and augmented reality are the types of technologies identified by banks which will upscale the customer experience.Getting this right is important, since almost all of the banks surveyed said they were increasing the range of different digital technologies and with those technologies already in place, the use of these is set to expand. The reason for this is because digital technologies are yet to be fully deployed at scale.Four pillars for DX successWhile cultural factors and indecisive leadership are presenting obstacles, there are measures that banks can put in place to help keep their digital strategies on track. For banks to be successful with digital transformation, the Boston Consulting Group recommends that banks and credit unions focus on four priorities (what they term as pillars). These are:Reinvent the consumer journey, using the example of how banks can become more like Amazon.Leverage the power of data. This includes looking at how data analytics can enable banks and credit unions to best understand consumers, plus to identify business opportunities and lower costs.Redefine the operating model. This involves striking the right balance between human interaction and digital and self-service functionality for consumers.Build a digital driven organization. Here digital needs to be seen as the new norm. To do this banks need to recruit the right talent, discover agile ways of working and construct an organizational culture that is willing and able to take risks.Some banks have been successful with digital transformation. As an example, analysts at Forester single out BBVA, the Spanish bank, for its digital mobile platform. This is especially with squaring functionality with ensuring that the user experience is enjoyable and as seamless as possible, whilst maintaining the necessary security checks.

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