8 Factors That Drive Digital Transformation in Banking Industry

By Veritis

8 Factors That Drive Digital Transformation in Banking Industry

Digital Transformation is enjoying a deeper penetration across all industries, irrespective of the different end-user base and other factors.

Increasing usage of smart devices, improved connectivity and demand for high end-user experience are among key aspects driving the digital transformation trend, taking services to the customer doorstep.

The banking industry is one that is undergoing such rapid modernization giving scope for digital transformation across its operations.

However, a successful digital transformation journey in the banking industry is dependent on 8 key factors, they are:

1) Customer is Crucial

Ensure to understand and analyze what the customer is looking for. Seamless delivery of services, high end-user experience, personalized product experience, transparency and security stand at the core of customer satisfaction in today’s fast-changing market trend. It has become imperative for organizations to adopt ‘customer-first’ approach to achieve success in this competitive scenario.

Bring about the change in operating procedures, introduce digital platforms in service offerings, enhance customer interaction procedures, and more. All these activities not only enhance your service delivery, but also boosts customer engagement with your business, the key driver behind any business success.

2) Continuous Improvement

Seamless innovation delivery pipeline built on agile principles is key to achieving continuous improvement. The pipeline should be so effective and be able to easily track changing market trends, test innovative products and facilitate fast feedback mechanisms to iterate products for enhancements.

This cycle naturally contributes to on-demand service delivery, continuous innovation and continuous improvement, resulting in accelerated time-to-market.

3) Modernize infrastructure

Achieving digital transformation is not just introducing digital technologies. The underlying infrastructure has a crucial role in facilitating the information flow that are key to the frontend digital operations. So, it’s important to modernize your legacy infrastructure to support digital platforms.

Microservice architecture, APIs and DevOps can be helpful in this regard for continuous integration and delivery resulting in shorter release cycles.

4) Operating Model

Now, customers are in need for a hybrid experience, a combination of never-seen digital experience in terms of speed and convenience, and personal look and feel of the product. This is possible by transforming business in three different operations models:

  • Digital as Business – At the management level
  • Digital as New Line of Business – At the next level as separate digital division to take care of digital activities
  • Digital Native – New setup with its own technology stack, focusing directly on customers

5) Identify Viable Solutions

Make sure not to miss out anything in the process of modernizing your legacy infrastructure. Even the things you feel obsolete can make some crucial contribution. Identify and leverage the potential of all the minimum viable solutions, and introduce them across digital channels. Ensure to make the effective and best utilization of existing options too.

6) Leverage Power of Data

Banking institutions should realize the power of data and related tools and resources in driving business success. They have to think more about implementing data analytics practices to understand and monitor customer thinking patterns. This helps them produce the most relevant products that match customer needs.

This will also help them gain key market insights that can further assist them in enhancing product offerings, experience and deepen the customer relationship.

7) Improve skillset

As the World Economic Forum’s report shows, more than 55% of finance sector employees will need to upgrade their skillset to fulfill existing and changing operational demands. The drive for improved skillset will require necessary investment for change in operating culture, thinking patterns, culture of learning, skillset training and more across the teams.

8) Completely Digital-driven

Finally, the organization should possess all digital capabilities such as strategy, culture, relevant technologies, funding, skillset and more that contribute to a complete digital transformation journey. Learn from the experiences, adopt the best available practices and develop a perfect digital strategy.

On an EndNote
More than enthusiasm, a perfect digital transformation journey should ideally begin with a well-planned strategy backed by a clear vision.

Go with stepwise implementation, make priority-wise investments and spread the culture across cross-functional teams to achieve the desired results.

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