To succeed in the future, financial institutions must embrace a culture of innovation that reinforces the process of digital transformation. To accomplish this, a bank or credit union must have strong leadership, openness to experimentation and risk, willingness to challenge the status quo, and solid business strategy that “pushes the limit” of what can be possible with modern technology. Most importantly, the institution must possess an overarching focus on the customer.
Complacency continues to be one of the biggest challenges to becoming an innovative organization. It arises when strong revenues are being delivered, existing customers are not complaining, and shareholders are happy. (“If it ain’t broke …”) This is a dangerous scenario, however, since despite these positive indicators, we have also seen advanced digital technology being introduced, the competitive battlefield intensifying and the metrics for success shifting.
Today, small fintech and large technology organizations have found ways to reduce costs, improve back office operations, deliver a better customer experience and create banking solutions never before imagined. Unlike the iterative innovations from the past, a premium is now being placed on “big ideas,” agility, and real-time application of data for personalized contextual experiences.
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