Banks can take multiple paths to become digital-ready
Banks and credit unions are in a state of digital transformation. Organizations of all sizes are not only evaluating new technologies, but entire business models and the way they interact and satisfy consumers. How far away from 'digital readiness' is your organization? What is the best route to success?
Organizations in every industry are trying to determine how to leverage advanced technologies to improve efficiencies and effectiveness, while improving the customer experience. In banking, the pressure to perform is intensified by new competition that is impacting every traditional line of business, using targeted solutions to attack revenues in payments, lending, investments and small business banking.
Research by the MIT Sloan School of Management’s Center for Information Systems Research in both 2015 and 2017 examined the capabilities needed for becoming a top performer in the digital economy. Not surprisingly, the research found that organizations prepared for the future performed the best. What was interesting is that there wasn’t a single path to success.
While oversimplified to an extent, the MIT Sloan research found that becoming ready for the digital future requires improving the organization along the dimensions of customer experience and operational efficiency. The overarching goal: To move from a “traditional state” (traditional customer experience and traditional operations) to a “transformed state” where net promoter scores or similar experience metrics and net margin or cost-to-income ratios improve.
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