8 Factors That Drive Digital Transformation in Banking Industry
Digital Transformation strategy is enjoying a deeper penetration across all industries, irrespective of the different end-user bases and other factors.
Increasing usage of smart devices, improved connectivity, and demand for high-end-user experience are among the key aspects driving the digital transformation trend, taking services to the customer’s doorstep.
The digital transformation in banking industry is one such scape that is undergoing such rapid modernization giving scope for users to use digital transformation tools.
However, a successful journey of digital transformation in 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 a ‘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.
And digital transformation strategies are about making things simple and current. In this age of the Internet of Things, digital transformation is vital to stay ahead of the competition. The digital transformation banking strategy has to be customized to the customer’s needs. Post-Covid, most of the customer bases have become reliant on digital technologies and it is all the important to reinvent your aging, legacy infrastructures before your competition overtakes you.
2) Continuous Improvement
A 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.
With an increased appetite for digital products, reliability and robustness are expected. Your digital transformation strategy and digital transformation tools should foster growth instead of complicating things with jargon and techniques which are not required in the first place. One should understand that digital products need and demand continuous improvement. If one ignores the continuous refinement, the products will no longer be future-proof and the deliverables are at risk of becoming outdated. So, by harnessing the inputs of your customers and quashing out the bugs in the deliverables, your products, which have been built on your unique digital transformation strategy, should be bettered using value engineering.
3) Modernize infrastructure
Achieving digital transformation is not just about introducing digital transformation technologies. The underlying infrastructure has a crucial role in facilitating the information flow that is key to the front-end digital transformation journey. So, it’s important to modernize your legacy infrastructure to support digital transformation strategies.
What we have to understand is that the world has become increasingly interconnected and given the digital transformation strategies which have fostered digital innovation, change is happening at a higher rate than ever before. These digital transformation trends are difficult to cope with and the companies which have their hand’s full rope in MSPs such as Veritis to execute digital transformation strategies.
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 of a hybrid experience, a combination of never-seen digital experience in terms of speed and convenience, and the personal look and feel of the product. This is possible by transforming the business in three different digital transformation technologies models:
- Digital as Business – At the management level
- Digital as New Line of Business – At the next level a separate digital division to take care of digital activities
- Digital Native – New set up with its own technology stack, focusing directly on customers
These are the various types of digital business transformation models available. However, selecting the right one needs due diligence and expertise. These factors influence most innovative enterprises to seek the digital transformation services of Stevie Award winner Veritis.
5) Identify Viable Solutions
Make sure not to miss out on anything in the process of executing the digital transformation strategy. Even the things you feel obsolete can make some crucial contribution. Identify and leverage the potential of all the minimum viable digital transformation solutions, and introduce them across the digital transformation services. Ensure to make the effective and best utilization of existing options too.
Most of the time, enterprises get swayed by digital transformation technologies and take on too many digital transformation tools. This results in unwanted expenses and the solutions that needn’t be modernized are unwantedly bogged down by these digital transformation technologies.
6) Leverage the 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, and experience and deepening 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 skill set to fulfill existing and changing operational demands. These needs have the potential to be catered to by digital transformation services. The drive for improved skillsets for the enterprise digital transformation will require necessary investment for change in operating culture, thinking patterns, the 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. The digital transformation strategy should also factor in the latest digital transformation trends and dole out a digital transformation framework that is based on customer requirements. 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.
However, overhauling the infrastructure with digital banking transformation technologies is a herculean task and that’s the reason as to why companies of various sizes from different sectors rope in Stevie Award winner Veritis to execute the digital transformation strategy. Reach out to us and we shall help you along the digital transformation journey.