How Banks Can Get Ready for a Digital Transformation

A large segment of the Banking Industry is not yet to embrace large scale Digital Transformation. This might sound astonishing but a reality check on today’s Banks will reveal the actual story. This puts them at risk of lagging behind in terms of competition and under constant security threats (Data Loss, Connectivity Failures, Delays & Frauds). In the long run, several renowned traditional banks are at the risk of being obsolete if they are unable to incorporate a Digital DNA in their day to day operations.

Some of the most common traits associated with Banks with respect to under preparedness to embrace digitization are

1. Legacy Systems which are slow and incompatible with modern Digital Tech

2. Older workforce which is not highly tech savvy

3. Traditional Business Model

4. Lack of Specialized Teams & Departments

In order to become Digitally stable and potentially competitive, banks must ensure that they approach digital transformation with a fixed plan and a logical approach namely

1. Implement and use AI & hybrid cloud

2. Reinvent Digital Payment processing

3. Use Cloud as a platform

4. Develop Omnichannel products, services & applications

5. Incorporate robust Data Security protocols

A holistic approach towards Digital Transformation would allow traditional banks to succeed faster in adopting a Digital Future.

What are the impediments banks could encounter on the road to digital transformation? And could starting the right way help mitigate some of those risks?

Is digital transformation for banks necessary?

Mounting regulatory pressures and an onerous compliance landscape, constrained margins, rapidly evolving customer expectations, intense competition, and the rising competition from neobanks are putting traditional players in the sector in a tight spot.

The only way banks can overcome each of these challenges with precision is with agility, data-driven strategies, and targeted activity. That can, in turn, be achieved by digitally transforming the organization end-to-end.

Transformation can not only open doors to a world of new business opportunities; it can also help personalize and improve the banking experience for customers.

A directed transformation strategy and continuous improvements can result in multiple benefits including a superior customer experience based on:

• Anytime, anywhere banking, allowing customers to use any device to carry out banking transactions.

• Save customers the time and effort of physically visiting banks and leverage a world of banking opportunities at their fingertips.

• Receive 24x7 online support and service – all year round – and even on public holidays and weekends.

• Quicker and more reliable banking operations – without incurring any additional stress or fees.

There are also several operational benefits, like:

• Equip banking staff with the best technology and tools to meet evolving customer needs and serve customers better

• Easier tracking of customer details as well as streamlined management of personal information to drive more insightful engagement strategies.

• Automation of repetitive tasks and customization of workflows for increased productivity and efficiency

Discover more insights in the full article!