Digital Banking Transformation, where should you start?

The Financial Brand published an interesting article regarding how – “Many organizations are overwhelmed by the scope of change required to become a “digital bank.”  Bank and credit union executives are bombarded daily with messages warning of the demise of banking as we know it if major actions aren’t taken immediately. From replacing legacy systems to implementing artificial intelligence, there are more priorities than any organization can handle at once. As a result, many financial institutions end up doing nothing or focusing on initiatives that don’t move the needle on revenue, cost containment, customer experience or market value. The question, “Where should we start?” has never been more important. There are mounting pressures from consumers, the government, new competition and shareholders to do something meaningful … TODAY.”

This article touches on very valid areas to focus on first as follows:

Improve your Mobile Banking Experience

1. Mobile Account Opening
2. Funds Transfers
3. Bill Payments
4. Mobile Deposit
5. P2P Payments
6. Push for Engagement

Become a Financial Partner

1. Real-time Financial Insights
2. Proactive Alerts and Notifications
3. Automated Savings Tools
4. Financial Education
5. New Product Innovations

Personalise the Customer Experience

1. Move from Product Campaigns to Solution Marketing — Customer data must be processed every minute (or more rapidly), with “next-best-actions” offered based on identified needs, past and current behaviours and solution options.
2. Advanced Marketing — Find partners with the requisite talent to assist with the collection, processing, analyzing and using customer insights to deliver personalized marketing.
3. Digital Re-targeting — Millions of dollars of new business and revenues are lost annually by not tracking consumers’ shopping and purchasing patterns. Digital abandonment occurs not only at online and mobile retailers, but also as consumers try to use online or mobile banking apps. Banks and credit unions need to understand the customer journey and retarget all the people who wanted to engage with them but stopped doing so out of frustration.

These 3 key areas of focus are 100% spot-on. At Altitude Advisory International, what we have learnt while supporting Banks with their Digital Transformation Strategy, is in order to tackle these 3 key focus areas head on, you first need to:

1. Ensure organisational alignment regarding the Digital Strategy, from the top-down. Obtaining buy-in from the various Heads of Departments across the bank is critical to ensuring the overall success of the EXECUTION of the Digital Strategy.
2. Focus on Leadership & Culture upfront — it is imperative to change the internal culture, to align with this new Digital Transformation Strategy to allow the change to penetrate from within, across all levels of the organisation.
3. Realign the overall organisation and operating model to support the new strategy and seek to attract and retain new talent in support of this as needed.

CONTACT US if you are interested in learning more.