3 things you should NOT do with banking digital transformation roadmap

When it comes to your banking digital transformation roadmap, there are three things you should never do. Fail to involve your customers, neglect your mobile strategy, or underestimate the importance of security. By keeping these tips in mind, you’ll be on the right track for a successful transformation.

1. Considering the CBS transformation to be solely a technological transformation

Most successful CBS implementations begin with an organizational transformation that places the right people in place—or the transformation happens concurrently with the technological transformation.

Banks that implement DevOps and agile practices before the transformation, such as sprint teams and continuous integration and continuous delivery (CI/CD), are more likely to succeed because these models work well within a flexible modern architecture. According to research, even successful banks can miss out on performance improvements of up to 50% if these approaches are not implemented.

2. Failure to align stakeholders on the new system’s function and scope of the new system

While the business and technology sides of the organization may agree on the need for a new CBS, they don’t always agree on why it’s necessary. CIOs and CTOs want to modernize system architecture in order to enable new capabilities, such as rapid product releases. Business leaders, on the other hand, want to increase revenue by reducing time to market, while CFOs want to reduce overall costs.

These competing priorities frequently lead to significant misunderstandings as well as misaligned incentives and planning horizons. All stakeholders significantly underestimate the time required to migrate customers to the new CBS—in many cases by up to 75%. To achieve strong stakeholder alignment, a company should seek out an implementation partner who has a vested interest in the transformation.

3. Failure to integrate the CBS into the larger platform

Customization increases the complexity of the CBS and can offset potential efficiency gains in the medium to long term. Banks, for example, may underestimate the time required to integrate the new system with back-office applications, resulting in more customized solutions and complex interfaces that result in significant budget and time overruns.

Similarly, banks may fail to detect missing functionality in the new system or fully comprehend its complexities. This lack of clarity can cause project delays, and banks may develop expensive custom solutions to facilitate integration. Banks that build a digital attacker alongside the existing CBS, on the other hand, will not have to deal with legacy system migration issues.

Conclusion

Don’t forget these critical components as you develop your banking digital transformation roadmap. Incorporating all three of these into your strategy will help you create a holistic, customer-centric approach that sets you up for success. Trying to go it alone is a recipe for disaster – partner with an experienced firm that can help you navigate the complexities of the digital world and stay ahead of the competition.

For more advice about this issue, please contact SMARTOSC Fintech to get more ideas.