The four pillars of digital transformation in banking

Digital transformation is about more than just providing online and mobile functionality. Traditional banking providers need to combine digital speed and convenience with human interactions that are both thoughtful and caring at crucial moments in the customer journey. Here’s how to get there.

Four out of five financial institutions believe that digital will fundamentally change banking and completely transform the industry’s competitive landscape. But according to research from the Boston Consulting Group, less than half (43%) confess they don’t even have a digital strategy. And an astonishing one-in-five banking execs consider their bank or credit union “market leading” when it comes to digital.

What’s holding them back? The vast majority point their finger at their current technology infrastructure. (Translation: “It’s our core DP’s fault!”)

So what should traditional banking providers do to remedy the situation? Just like with any major transformational initiative, you should begin with a strategy — digital is no different.

“The starting point for each financial institution will depend on its business strategy, market position and capabilities,” Boston Consulting Group says. “But all must consider how they can reshape their distribution models, improve their value propositions and develop end-to-end consumer-centric journeys to increase growth and customer satisfaction.”

 

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