Financial organisations recognize that digital transformation in banking necessitates fundamental modifications to existing business models in order to boost efficiency and improve consumer experiences significantly. More than merely investing in contemporary technology, corporate decision-making, and back-office operations must be aligned, aided by data and applied analytics.
When there is so much to be done, most businesses struggle to choose which activities should be prioritised. Many times, the technology and skills required to make the necessary changes are not easily available within the organisation. More often than not, the organisation’s leadership and culture are not in sync with what is necessary to accomplish such a paradigm change. In any case, the reality is that this change is happening at a faster rate than it has ever occurred before.
Begin with the customer’s experience
Although it appears reasonable that a financial institution’s digital banking transformation should start with the customer experience, many businesses are unaware of the performance gap that exists between a superior digital experience and what is presently being delivered. When banks and credit unions ask, “Where should we start?” It is a tried and tested suggestion; making the process of opening a new account and borrowing digitally faster and easier can serve as the first step towards bringing digital transformation in financial services.
Most financial institutions have seen a staggering rate of 40 % to 80 % digital new account and digital loan desertion rate, depending on the complexity of the procedure.
Create messages that are significant and captivating; educate and empower your employees
Consumers get thousands of communications every day, which means that your message could get lost in the shuffle. (Along with all the ads from other banks and credit unions).
Support Intelligent Workflows with Data and Insight
Financial institutions must reconsider how they acquire and use data and insights. Previously, the majority of data was utilised to generate reports that management tracked against yearly goals. Data and applied analytics will be used much more widely in the future across the firm.
Make an effort to foster a culture of innovation
With more and more technological changes required for the digital banking revolution, there must also be a customer-centric innovation culture throughout the firm. Most digital businesses use real-time data and insights, as well as new technology, to uncover market possibilities and distinctive solutions that align with their objectives.
Most financial institutions would be better served to discover incremental modifications to current goods and services that will generate better experiences and promote client growth and retention rather than brand new disruptive technologies. As consumers and organisations have more options from fintech firms and huge tech suppliers, this type of continuous and never-ending innovation is more critical than ever.
Enhance digital training by hiring for skills
Many financial organisations are embracing some sort of hybrid work model that blends work-from-home and office-based working, while the future of work is still being determined. A reconsideration of how financial organisations hire, train, promote, and connect with people is a major issue affecting the workforce.
Create awareness and generate advocacy among your frontline personnel before presenting a new function to your consumers or members. Engage them, train them, and consider allowing them to participate in trial initiatives directly. Ascertain that they are aware of the advantages so that they may confidently discuss and promote them.
Accept and Embrace Change
Accepting the necessary change is one of the most difficult issues for financial organisations seeking to shift to a digital organisation. According to the Digital Banking Report, many executives rely on past triumphs, which stifles the drive to make the required adjustments. This includes anything from simple changes like changing back-office systems to moving at the speed required to flourish in the digital banking ecosystem.
Collaborate with 3rd-Party Solution Providers
Winners in the game of digital transformation in financial services will be determined by their speed to market. No company should go it alone when it comes to digital transformation, especially when there are so many financial solution providers and fintech companies willing to cooperate and/or partner for better client experiences and operations.
The good news is that there are a plethora of highly competent solution providers for practically every aspect of digital transformation. Furthermore, most solution providers have already travelled the path you wish to go, have encountered the same obstacles as your company, and have compelling case studies to present.
Request that your users take action
The element of your marketing message that instructs the reader what they should do next is called a call-to-action. It should be short, to-the-point, and begin with a command verb. “Download our mobile app,” for example, with visuals of app store badges included (and in digital assets, linked directly to your app in the respective app store).
Use both digital and traditional methods to your advantage
The more often and in more locations a person sees a message, the more likely they are to interact and act. Promote your message through many media to increase awareness. They should be promoted at your branch and online, as well as on ATM screens and in your call centre.
Keep up the momentum
Keep your marketing strategy running once you’ve started it. The classic marketing cliché states that a prospect must be exposed to a marketing message seven times before responding.
The more often your message is displayed, the more likely it is to be remembered. So continue to advertise your message everywhere to make it easy for others to see it.
Cross-promote
Look for opportunities to cross-promote digital banking. Encourage enrollment in internet banking, for example, during the account opening process. Use a credit card offer from your bank or credit union as a chance to cross-promote your mobile app.
You can get two messages in the space of one with the appropriate design and minimal wording.
Regularly evaluate performance
Keep track of your info. The client base of each financial institution is unique, and certain techniques perform better than others. Make sure to evaluate the effectiveness of your advertising, emails, and visitors to your dedicated homepage on a regular basis.
A digital transformation is a long-term process that might be challenging. However, by merely focusing on clients and following these procedures, enormous progress may be done.
It’s time to pull everything together once you’ve established your 12 step digital transformation framework.
Remember that, while digital data, technology, and procedures are critical to a successful transformation, your people are just as crucial. People in your organization can give insights and intelligence that lead to empowered decision making across the enterprise when you create a consistent framework for accessing and managing information.
