Jan 17, 22 | 5 min read
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As more and more customers seek competitive digital banking solutions , financial firms must be prepared to develop innovative platforms to serve them.
The journey towards digital transformation must begin as soon as possible or financial companies risk being overtaken by the competition, falling off the radar in the industry and losing their bottom line.
When this transformation is done correctly, the company, customers and society at large can experience significant benefits. That is why we will now address:
What is digital transformation and why is it so important for financial companies?
Real cases of financial companies that are going digital
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What is digital transformation and why is it list of turkey consumer email so important for financial companies?
Digital transformation can be defined as the adoption of digital technologies to modify existing business processes or create new ones. It also optimizes company culture and customer experiences to meet the demands of a competitive and changing market.
This reinvention of a business in this growing digital age is what we call digital transformation and goes beyond traditional roles such as:
customer service;
marketing ;
sales.
It is a transition that begins and ends with everything surrounding customers.
You need to rethink how you do business, as well as how you engage your customers. By doing everything digitally, from planning and construction, you'll set yourself up to be flexible, agile, and ready to thrive in the future.
You can also expect a much higher ROI in the coming years once you successfully execute your digital transformation strategy.
54% of financial services firms have begun developing a digital transformation strategy, while 68% are already actively managing an advanced strategy.
With consumers becoming more digitally savvy, financial companies must be ready to step up and meet the demands of this new type of customer.
Real cases of financial companies that are going digital
On average, 70% of companies that attempt digital transformation fail. It’s not easy, nor is it something that happens overnight. Beginning to merge your physical and digital components in an effort to address new consumer needs takes time and effort.
However, it can be done, and these financial companies are proof of that.
DBS Bank
Based in Singapore, DBS Bank was the first to launch a digital-only bank. At the start of its journey it knew it needed to focus on three essential elements:
how to go digital to the core;
how you could integrate digitalization into the customer journey;
how you could change the company culture to not only feel digital, but also operate like a true startup.
DBS Bank knew it would only get so far focusing on the actual digital processes and leaving the necessary organizational change on the back burner.
It spent the first few years of its digital transformation laying the groundwork for its future implementation, including building common platforms that worked across all of its banking branches.
This allowed him to start thinking about how to become agile, increasing the speed of his market efforts and his pace of innovation.
Developed some useful acronyms that helped the entire organization embrace digital transformation.
RED — Respectful, Easy to deal with, and Dependable , in everything related to customer service.
ATE — Acquire, Transact, and Engage — customers do all of these things digitally.
DBS Bank made sure its team had clear missions to work towards and accomplish. In the end, they found scalability, speed to market, experimentation, and more.
One example of their success was their mobile banking offering in India. DBS Bank wanted to scale their presence in India as they had limited branches in that part of the world.
With so many people in that market, they had to find a way to reach everyone. And that's when they developed a mobile-only option.
They learned as they went, tested and optimized, tested again and learned some more, and ultimately found success with their mobile launch in India.
ING Banking Group
ING’s approach to digital transformation enabled it to improve time to market, increase productivity and boost employee engagement.
He started his journey in June 2015 by implementing an agile way of working. He saw that consumer behavior was changing and knew he needed to find a way to adapt to this in order not to be left behind in the industry.
He realized that thinking traditionally wouldn’t get him very far and instead he needed to fully understand and focus on the customer journey in a new omnichannel environment.
The company is proud of its transformation success, relying on four pillars that it used to develop and implement its strategy.
An agile way of working: This made all employees in the company, regardless of department, work together quickly and efficiently.
Organizational structure : As with any transformation, there are changes that need to be addressed. This includes new roles and governance. Agility is hampered by having different departments and managers in place, so you adopted structural modifications.
