The digital transformation in financial services (or banking industries ) has been the talk of many years now. Therefore, almost everyone is familiar with why it is very important and its advantages like increased return on investment (ROI) and lower costs, and how traditional banks are being disrupted by challenger banks more and more each day as they fail to adopt digitalization.
As many financial institutions have come to accept the urgency of getting involved in this transformation, wrongful investments and procedures to do so can cause more harm than good.
To avoid sending thousands of dollars worth of investments down the drain, we have prepared the ultimate kit for a successful digital transformation in financial services that will help you navigate your digitalization progress.
1. Adopt the Culture
One of the most important points to keep in mind while starting your digital transformation is to accept it as a journey, rather than a few steps to complete. Digitalization is a whole process that requires constant innovation, improvements and consistency. Therefore, letting go of the past work culture and adopting a new workforce is crucial to achieving success. But, how?
Let Go of Buildings
The structure and the locations of physical banks are no longer a matter of importance for customers. As the COVID-19 pandemic has shown us, remote working, as contrary to the belief, is a very effective and productive way to keep your workflow progress seamlessly. And with the new generation of employees that are taking over the workforce, the 9 to 5 understanding is long gone. Therefore, invest more in mobilization rather than physical locations.
One of the other blessings of remote working or mobilization in financial institutions is that talent can be deployed from anywhere around the world. Use this to your advantage and deploy talent.
Cultivate the Shift
New employees may easily adapt to your new workforce; however, existing employees may need more to be able to adapt to the change. The cultivation should start from the top, setting an example of why and how the employees should leave the status quo behind and engage in the new process.
In other words, focus on moving employee behaviors and assumptions from a run-the-bank way of thinking to change-the-bank modes. Agility is a key factor to help drive this.
Value Employee Experiment
Customer experience (CX), as we will cover later in the article, is very important. But so is the employee experiment. Digital transformation is not only about revolutionary technology, but also about changing the way companies work. It’s a mindset shift that hinges not only on digital capabilities but on the adoption of those digital capabilities by the end-users—employees and customers—and business enablement.
2. Mobile, Mobile, Mobile
Mobilization works hand in hand with digitalization. And as traditional banking is leaving its chair to mobile banking, we cannot stress its importance enough.
Mobile banking is already very common and even the most traditional banks have launched their apps to play a role among other mobile-only banks. However, a poorly functioning mobile banking app may be worse than not having one.
When it comes to mobile banking, the most important factors are:
- User experience (UX) design
- User interface (UI) design.
Read our article if you’d like to learn more about the principles of making the best mobile banking app.
Collaborations between different industries are everywhere, and mobile payments are one of the best ways to do so. As it provides the customers convenience and compatibility, it has also been a factor of preference among customers during the social distancing due to the COVID-19 pandemic.
In addition, banks which collaborate with other institutions or brands (which is mostly possible via mobile pay) and offer their customers a certain discount out of this collaboration not only increases their customer satisfaction, thus, customer experience, but they also get to expand their customer base through the collaboration.
3. Deploy Technology
Of course, it comes without saying that technology is the base of digitalization. However, how effectively you use them is the most vital point.
Data is a subject that can’t be stressed out enough. From marketing to engaging with new customers, data is an important mine that is worth mining with everything you have, as long as you know how to utilize it properly. Using cloud services in the process is also a must.
Read our article to learn more about the FinTech trends that will shape the future of banking.
Artificial Intelligence and Automation (AI)
AI, chatbots, robo-advisors, virtual assistants… These technologies are not only cost-efficient, but they are also the best way to serve your customer 24/7 without any tired or underpaid employees.
In addition, automation simplifies most banking transactions. This is not only very efficient for you, but also very appealing for the younger generations which are the new customers of banking and don’t have much time nor patience.
While cryptocurrency may be the most widely known application to date, blockchain technology could also ensure more secure and automatic payments. Today, many financial services take days to facilitate global payments and money transfers (and are often limited to business hours), and blockchain-powered systems take a matter of seconds and run 24/7.
4. Customer Experience (CX)
Customer experience is the foremost important factor when it comes to any industry. You should ensure that your:
- mobile apps service and interface,
- security measures,
- offers and promotions,
- convenience and simplicity of transactions,
and everything else that comes to mind are designed to meet the needs of your customers. Thus, you will have a better chance of migrating customers to your digital banking platform.
5. Prioritize Cyber and Data Privacy
The main concern among customers who abstain from using mobile banking is security. You must ensure data privacy and cybersecurity via many encryptions and with other security measures.
Due to the proliferation of technology platforms and IoT devices, attackers use increasingly sophisticated methods and enter through a greater number of entry points. Financial institutions, with their treasure trove of sensitive client and third-party information, are particularly susceptible to these attacks, and those that experience such a breach will face serious consequences, including the loss of money and reputation and legal claims and sanctions.
To Sum Up
The digital transformation of traditional banking industries is very crucial for them to raise up to the challenge. However, taking the right angle in this journey is very important to prevent the loss of money, time and effort.
If you want a successful digital transformation within your financial institute, we are here to help. Foreks Digital Solutions has many references from reputable companies and banks and offers its services with in-depth technical & financial know-how, perfectly fitting tailor-made solutions and quality-driven continuous development.