Finding the perfect blend of people, processes and technology
Most financial institutions understand the critical need for digital transformation across the enterprise. Moving toward a more robust use of digital channels and tools can redefine business activities, processes, competencies and models to leverage technologies in a strategic way. The ultimate result should be optimized operations, a greatly enhanced customer experience and a sharpened competitive edge.
But how do you get started, or if you have started and stalled, how do you keep going? Finding the necessary digital and leadership resources can be a struggle. It will help to look at transformation as a journey. Start by figuring out where you want to go, then map out how you’re going to get there.
For financial institutions ready to start (or restart) down the path of digital transformation, here are some steps to take.
1. Outline Your Objectives
What do you want to accomplish? Do you want to implement a digital-first mindset and improve legacy systems and processes? Do you want to attract and retain new customers and members with digital services? Is your goal to leverage digital assets specifically to grow your deposits or loan portfolio?
When you set your goals, keep in mind:
- Data and metrics resources
- Incremental progress versus making a big bang
- Initiative leads and supporting cast
- Whether you need help from a trusted partner
This step includes creation of a simple and easy-to-communicate list of priority objectives for your digital transformation.
2. Compare Your Product Offerings With the Competition’s
Where do you stand in the market, in terms of your digital presence? Have you packaged your products for digital-first consumers? Do you use digital tools to educate your customers and staff?
When looking at your product offerings in comparison to those of your competitors, consider:
- The quality of, and features offered by, your website
- The ways you educate consumers
- The quality and appeal of your product packaging
Your goal is to create a comprehensive report card of how your financial institution stacks up against traditional and nontraditional competitors in terms of digital services.
3. Assess Processes and Technology
Evaluate your current inventory of systems and products. This is the foundation you have to build on. Do you have annual product planning activities that align with your budget and strategic plan? Are there capabilities that you haven't taken full advantage of?
A thorough review may reveal that you have more to work with than you initially thought. You’ll gain insight on how you can make the most of what you already have, and what you need to introduce to enhance your digital capabilities.
Then, get more specific about your processes. Do your processes support digital account opening? Is it a multichannel experience that can be started online and finished in-branch or through the call center? Do you have a process for monitoring app store ratings and other social media channels for consumer feedback on the apps and tools you make available?
When deciding how to transform your processes, think about:
- Multichannel experiences
- Branch servicing
- App store feedback
- Optimizing available digital services
The goal is to develop a comprehensive list of processes to be included in your transformation, based on time and budget constraints.