At the moment digital transformation is among the most influential trends in the banking industry. As customers gradually shift their spending to mobile apps and ecommerce platforms, banks should adapt their business models to stay competitive. Kavan Choksi points out that these changes often need a robust digitization strategy that can cover each and every aspect of the bank, starting from back-end operations to customer engagement.
Kavan Choksi shares insight into how a digital transformation strategy apply to banking
Digitalization has revolutionized banking in many ways. Customers today expect banks to deliver their services by leveraging innovative tools and technologies. Even though banking has not changed at its core, the manner in which banks assist their new customers definitely has. Today businesses should try to use up-to-date technologies to support this digital change both externally and internally and subsequently improve customer experiences.
Even today, a lot of banks consider digital transformation to be a distant goal, instead of something to implement at the moment. Fortunately, even though some financial institutions have been uncertain about shifting away from the traditional approaches, many do recognize the immense advantages of doing so. Creating a well-rounded digital transformation strategy to change how banking activities, processes, competencies, and models use technology can lead to optimized operations and improved customer experience.
It is normal to find it difficult to acquire the digital and leadership resources needed for this transformation initially. But as one does get started with the strategic planning process, gradually they will get the understanding of how to implement those plans while maintaining the momentum. Rather than considering digital transformation as a complex and intimidating process, they should view it as a journey that starts out by figuring out the destination and charting the route to get there.
The very first step of creating a digital transformation strategy for a bank would be to establish key objectives. Kavan Choksi points out that banks have to be clear about what exactly they want to accomplish with digital transformation. While some banks may focus on implementing a digital-first mindset and improving legacy systems and processes, others can prioritize attracting and retaining new customers with digital services. After defining the key objectives for digital transformation, banks must assess their current stock of systems and products in a systematic manner. After all, these solutions are important to keep the business running. Conducting a comprehensive review of the company would help the management team of the bank to identify what they need to work on, as well as the type of improvements they must make.
Just by being more clear and systematic about their processes, banks can increase their customer satisfaction levels to a good extent. For instance, they must make sure that their processes support digital account opening and remain consistent across varied digital channels like websites and apps. In addition to this, it is also vital to develop a well-structured change management program for the bank in order to make sure that the staff at every level of the company receives enough support to implement the transformation.