Digital transformation in banking goes way beyond just moving from traditional banking to digital banking. It presents the opportunity to change how a bank interacts with and satisfies its customers and to fundamentally shift from being product-centric to customer-centric.
How Can Banks Become Winners in a Digital World?
Many of our banking customers have an acute realisation of the challenge of digitisation and are pursuing transformation strategies to better position their businesses to compete in a rapidly changing world.
Digital transformation doesn’t only concern digitising the front-end and the primary ways customers interact with a bank, for example the website and the apps. That strategy would see the bank’s traditional infrastructure, back-end systems and culture remain intact.
Banks running on a digital core can reduce costs, streamline and automate processes. By delivering a truly end-to-end integration, banks can provide a seamless, engaging customer experience that separates the product from the client data. It also enables further transformation, by connecting to other FinTechs that provide new services and technologies like blockchain and artificial intelligence, in the new open banking environment.
Digital transformation in banking has all the challenges of a ‘traditional’ major change program – but with one notable exception: the end goal is likely to be continual change.
Agility and Innovation are Vital to Success
The Ubers, Facebooks, and Spotifys of this world frequently introduce clever new features, quickly and at almost zero marginal cost. They are natural innovators and are agile enough to exceed customer expectations without any major implementations, upheaval or cost implications. They easily roll out new offerings and scale them up or down – at will.
Banks need to be as agile and innovative as these other digital-first businesses, with digital savvy Execs running the bank, putting digital solutions at the heart of everything they do.
Agility is vital to managing the constant change needed to adapt and compete in a digital world and this needs to be baked into the bank’s culture, people & processes.
With market and customer expectations demanding increased dynamism at the front-end, the system architecture must be agile enough to handle it. Banks need to design modular architectures that will make it possible for the bank to innovate in the same way – fast and in line with customer needs.
With an increased capacity to innovate, banks can change the way they release new products or features. The traditional waterfall approach to new product development can be replaced with a DevOps based Continuous Integration, Continuous Deployment (CI/CD) approach. This method is characterised by short, frequent release cycles, where a running pipeline of improvements are automatically and continuously rolled out over native cloud technologies.
In this way, small incremental changes are regularly made, rather than huge, infrequent ones that involve major upheaval. Banks can continuously introduce smart new features in the background, while business runs as usual on the front end.
Banks need this freedom and velocity to stay in touch with market demands. With a more agile foundation in place, they can really start to innovate for competitive advantage.
How can Exception help?
Through our extensive experience in financial services and in managing significant business change and digital transformation programmes across multiple sectors, we are helping our banking customers make the transition to digital-first organisations.
We bring to bear our knowledge, capabilities and depth of experience in key areas such as Agile Development, DevOps, Architecture Design, and Cloud, to help you address the many challenges outlined above, through services including:
– Digital consulting
– Agile development – managed services & feature teams
– DevOps – assessment and managed services
– Cloud adoption & migration
We engage flexibly based on client need – depending where you are in your journey and how we can best help you get to your destination, adding the most value along the way.
Please get in touch to explore how we can help you too.
By Brian Douglas – Sales ConsultantBack to articles