How can you reduce the costs of digital transformation in banking?

Goals and priorities in Digital transformation is not a one time exercise. While this requires vision the path to achieve it requires careful and continues review and alignment. An agile design and delivery cockpit responsible for the priorities and outcomes is quite helpful. This becomes extremely important where transformation is on top of significant existing Infra and investments.

From experience, streamlining the tools and resources needed usually has a better adoption process. Providing proper training to use tools also helps with the adoption

To cut digital transformation costs in banking, focus on prioritizing key technologies, leveraging existing infrastructure, and adopting gradual implementation rather than a big bang approach. Explore cost-effective solutions and collaborate with fintech partners for shared resources. Streamlining processes and promoting a culture of innovation can also contribute to cost savings.

Embracing modern technologies through automation and streamlined workflows, this will reduce manual labor costs and inefficient processes

We hear a lot about partnership eco systems. In my experience the ability to recognise and stick to partner value quotient will help in managing this partner eco system efficiently. This is a complex process not necessarily driven only by procurement but more on the business value creation in a given period of time.

Within my organization we align ourselves with vendor partners that allow us to grow into our digital vision. The key to transformation is staying nimble and having the elasticity to change. It may require a larger investment up front but it has saved from needing to re-tool and train every few years when we might need to beef up the tech infrastructure.

In banking, reducing the costs of digital transformation hinges on strategic partnerships. Proxet, with its expertise in fintech, offers custom solutions in data management, AI, ML, and cloud technologies. This focus on tailoring services to specific banking needs ensures cost-effective digital transitions. Proxet's approach to innovation, emphasizing data strategy and efficient cloud integration, aligns with banking goals of optimized operations and enhanced decision-making. This strategic alignment with a partner like Proxet helps banks not only in transitioning smoothly but also in achieving digital transformation cost-effectively. It also helps to previous worked at First Republic Bank (RIP), we have an empathic understanding.

I am looking on the business relationship, we can explore or engage or collaboration with other partner who has implemented digital, hence we can reduce cost rather than we build or develop by ourself and start from zero

Process and standardization is a key to achieve digital transformation, not just by writing policies and procedures for departmental communication rather automate the key areas including Customer experience, implementation of organizational CRM, use AI based tools for repetitive tasks to eleminate human errors and achieve quick results.

Automation is indeed important. However, prior to automating one crucial element that is usually missed out on is, elimination of unnecessary processes. There are times institutions tend to automate and streamline processes that are irrelevant causing waste of time, resources and efforts on non value added processes.

Automation is a game-changer in corporate banking, streamlining processes for enhanced efficiency. It allows professionals to focus on strategic decisions, boosting productivity. The accuracy of automated systems minimizes errors in financial transactions, crucial for trust and compliance. While automation brings job displacement concerns, its benefits include cost savings and a more dynamic workforce. Striking a balance is key, acknowledging initial implementation costs and ensuring a harmonious integration of technology and skilled human resources.

Automation has helped my organization ensure the right information gets to the proper stakeholders as quickly as possible. We use Microsoft’s PowerAutomate to save hours of back-and-forth of follow up to get what one singular input can provide us.

At the time of assessing and formalizing Transformation needs. Reporting needs are usually missed out and only post implementation banks end up realizing that to monitor the change they do not have the right reporting mechanisms due to which results of those KPIs can be inaccurate.

Conventaional banking systems run usually in silos with their own UI and database systems. In my experience, the biggest problem faced by the banks when it comes to digital transformation is data standardisation and introducing micro services based architecture. One way to resolve the data standardisation problem and reduce time and cost is to setup data-lake. Once its done, it's easier to introduce micro services based architecture compatible with any cloud based infrastructure or orchestration system such as kubernetes.