The Key to successful digital transformation in banking

1- Put customers at the core

Clients today are demanding. They want consistent interactions across every channel; highly tailored goods and services that address their individual habits, expectations, and goals; rigorous security; openness of business; and fair pricing, most significantly. Product teams must drop the conventional inward emphasis ("What's best for the bank?") to focus on consumer desires and expectations in order to reach customer centricity as an enterprise objective.

An Asian bank servicing some of the world's fastest-growing smartphone markets, for instance, saw a chance to develop a bank that was fully digital right down to its heart. It envisaged a branchless, mobile-only bank that would deliver all a physical bank's features, while rendering any step paperless and smooth, resulting in a bank that both impresses the new generation and simplifies millions of people's banking.

2- Accelerate time-to-value

Consumers expect their banks to double down on their value proposition within 18 months or less, something like Moore's Law, which expects the doubling of transistors in an integrated circuit every two years. This suggests that banks need a smooth innovation distribution pipeline based on agile processes, one that observes industry dynamics, measures new products, and then uses rapid feedback mechanisms to iterate quality enhancement products.

Such an agile, on-demand pipeline of creativity would help banks reduce the turnover of customers. Leading banks have a formal innovation method of producing innovations, running hackathons and engaging in winning ideas by in-house incubators to boost time to market.

 

3- Modernize legacy systems to keep pace with digital

While emerging technology such as cloud, big data and analytics will increase business performance, they still rely on on-premise data and knowledge flows through legacy systems. Modernizing these main structures using micro-services, APIs, and DevOps processes for continuous integration and distribution is a critical component of digital transformation, leading to shorter update cycles.

4- Leverage the potential of minimum viable products (MVPs)

Although 61 percent of respondents from financial services and FinTech businesses feel that they are good at producing innovations, just 41 percent feel that they are good at creating MVPs, according to a PwC survey. Using the micro-services and APIs described above will assist banks to roll out much-needed MVPs across digital platforms and prevent being redundant. The same hurdles that banks face with MVPs were solved by one multinational telecommunications company-inflexible legacy structures and a tight regulatory environment-and accomplished a drastic 66% reduction in cycle time from concept to feature introduction to output.

5- Upskill the workforce

Nowadays, many of financial services sector workers will need new skills to support the evolving development of the customer needs. Since automation eliminates repetitive tasks, enterprises need to answer questions about "automation anxiety". This can be achieved by hosting hackathons that infuse workers with creative thinking, engaging in cross-functional teams, and reskilling personnel to build a learning community that would be crucial for banks to succeed.

Enterprise resilience and the capacity to rapidly evolve, adjust, and react is no longer an option but the foundation of banks' efficient digital transformation if they are to satisfy the evolving demands of customers and fend off new rivals based on digital technologies.

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