As the world of finance moves toward a more digital future, banks are leading the way in financial technology. This presents both opportunities and challenges for the industry. In this post, we’ll explore some of those hurdles as well as what banks can do to overcome them.
Managing the shift in customer expectations
Customers expect more convenience and value, and they want to be heard by the companies they do business with. They also want to be able to do more in their own time and on their own terms, which is why many banks are turning to digital channels for customer service. In fact, according to Forrester Research’s The State of Digital Banking, 2022– 60% of U.S., UK and German consumers prefer digital channels when communicating with financial institutions.
Banks need a culture shift within their organizations if they’re going to keep up with these changes in customer preferences–and this can be challenging because it requires new thinking from everyone involved: senior management as well as IT teams (who often oversee legacy systems).
All hands-on deck for digital transformation
The first step to digital transformation is getting everyone on board and working together. This can be challenging, because it requires a holistic approach that encompasses not only technology but also people, processes and culture. The second step is communication: you need to communicate clearly with your stakeholders about what you’re doing, why it’s important and how they can contribute.
Because digital transformation can be a vague concept, but provide huge change, it can be hard to lay out exactly your plan to the stakeholders. In general, digital transformation, through business process automation, can reduce spending on redundant information, reduce time spent wading through that information to provide customer care, and increase data security. With regulations on these matters constantly changing, it is important to make the changes and not wait until all of your processes and security measures are considered unsafe.
Digital transformation as a business initiative
Digital transformation is a business initiative, not just a technology initiative. When you think about digital transformation, it’s easy to get caught up in the technology and forget that it’s not just about technology; it’s also about marketing, customer experience and even customer relationships.
Digital transformation involves changing the way your customers interact with your brand or business–and those changes must be driven by data-driven insights that come from analyzing user behavior patterns across channels (i.e., mobile app vs desktop web browser). This is why it is important to have leaders of all of your teams on board with the new processes, technology, and security measures. Each of your teams is impacted, and just one failing to adhere to new workflows can hamper the impact of the transformation.
A small step for data security, a giant leap for your customers
The digital transformation is a key part of the future of banking. Banks are working hard to make sure their digital transformations meet the needs of customers, but they also need to ensure that they have data security in place as well. Data security is an important part of digital transformation, but it’s only one small step toward creating an amazing customer experience and building long-lasting relationships with your customers.
By implementing additional security, you can make sure that your customers are protected, and improve your business processes as well. Unity for nCino layers security measures to make sure only the correct employees have access to certain documents. This, along with reducing duplicate information, means sensitive items are always up to date for the people who need it.
We’re excited to see what the future of banking looks like. The key takeaway here is that banks are working hard to make sure their digital transformations meet the needs of customers. This means that digital transformation will continue to be a priority for banks, and it also means that there will be more opportunities for you as an IT professional.
Interested in improving your businesses day to day life? Take a moment to speak with one of our team members about how we can improve your processes or update disparate systems.