Digital transformation for banking: expectation vs reality

A fundamental shift in company culture and leadership emphasis is necessary for digital transformation. Since no firm can undergo digital transformation all at once, it also calls for knowledge of the aspects of the process that demand changes the most. Each firm must rank its transformation activities according to its own business goals as part of the strategic planning process.

In this article, SMARTOSC Fintech will show you the  expectation and reality of digital transformation for banking.

Expectation

Upgrade Systems and Processes

The good news is that there are several solution providers that can improve systems gradually, enabling businesses to concentrate on their most pressing needs. In order for banks and credit unions to keep up with the quick changes in the market.  Many modernization businesses are also using agile concepts and shifting to the cloud, which enables the processing of enormous volumes of data and insights in real-time and at a significantly lower cost.

The legacy systems take time for digital transformation for banking. Each organization’s incremental process is different based on its goals and foreseen business requirements. Building a flexible infrastructure that can accommodate both present requirements and potential developments is the aim.

Leverage Modern Technologies

Banks and credit unions must implement new technology across the whole company, transforming how businesses function and provide value to clients. The digital transformation for banking has transformed as a result of new rivals and customers who are more aware of what is available, such as when they order food from a speech device, communicate with others via video, or hail a cab with their phone.

Reality

The need to integrate/connect distribution channel

the necessity of integrating/connecting distribution networks in order to boost productivity, cut costs, and provide consistent service to clients and prospects. This is the so-called “omnichannel imperative,”, which is typical for a channel-agnostic and increasingly digital/mobile customer and has been witnessed in retail and other sectors as well.

Customer service and experiences

By examining the overall customer life cycle (and significant changes in it), it will be easier to identify opportunities, improve experiences, and (thus) enable better customer service and experiences.

Reducing churn and increasing loyalty

Customer loyalty in digital transformation for banking varies. This is related to a number of the below-mentioned additional difficulties as well as broader shifts in customer behavior. While in certain places loyalty is growing, it is sometimes declining. Additionally, loyalty is no longer sufficient.

Disruptive models

The rise of digital transformation for banking and other rivals with innovative business models that are better suited to the increasingly digital customer is last but certainly not least. Depending on the geography and circumstances, the competitive environment has also seen major modifications (e.g., Islamic banks in the GCC region and several other countries).

Conclusion

Digital transformation for banking still has a lot of catching up to do, even while in some regions and nations it is leading in a number of digital areas, including marketing and customer-facing operations. If they do not have a helping agency, banks in general face extra difficulties that we also observed in other areas of the financial sector. 

To provide operational guidance, SMARTOSC Fintech will assist banks in developing a particular roadmap, training staff, and changing business practices. Liên hệ right away.