CIOs in the banking space predict that 45% of gross enterprise revenue will come from digital business by 2020. That is not in the too far distance, and frankly, I question that figure unless other transformation evolves or becomes more evident.
I recently read a paper published by Gartner, and the article states that “CIOs will need to help their organizations change the basis of competition, create new markets and cross-industry boundaries by creating an industry vision for digital business in banking.” So here is my question to you, the credit union executive. Is the CIO the one in your organization that is driving digital transformation and creating new markets and opportunities?
Digital transformation is not something that can be steered and driven within an organizational silo. And face it, your silos are likely very real. “Digital Transformation” must begin with an organizational philosophy that is embraced from the Board on down, and there should be a realization that such a transformation won’t happen overnight. The good news is we all understand the underlying rationale to digitalization and the benefits it brings to member experience and our ability to drive our bottomlines. The majority of credit unions have management teams that fully understand the need to reduce friction in the overall member banking experience. This “high-tech, high-touch” philosophy is something I recall hearing pitched back in the 1990’s, when many of us brought online banking into our new, shiny websites.
Understanding the value of digital transformation is not enough and we all need to see and feel the rubber hit the road. This can start with a very conscious shift in allocation of dollars to digital and we all need to come to terms that digital will make “traditional banking” better. Digital should evolve as a “philosophy” and its principles and insights should weave through all aspects of the credit union. Digital is the “cord” that runs through or ties to, every member experience, be it marketing or delivery.
Digital should no longer just be a channel or a series of tactics. Digital has the ability to make everything better, having a profound impact on all stakeholders at your credit union, which of course includes your members. Digital can run through your entire experience and needs to be a substantial component of your brand DNA.