Steps for the digital transformation of banking successfully

Friday, August 6, 2021

Steps for the digital transformation of banking successfully

Digital transformation is an impossible reality to avoid, but its success depends on achieving a perfect combination of people, processes and technology.

Digital transformation is a reality that cannot be avoided, but its success depends on achieving a perfect combination of people, processes and technology.

Traditional banking should take advantage of technology in a strategic and priority way, but always being clear about its north and how I should start to achieve it.

Digital transformation promotes an improvement both in the operation and in the efficiency of traditional banking entities , by reducing information failure and transaction costs.

In addition, greater commercial and operational efficiency, access to services and new services.

Here are some tips so you don't fail in this digital transformation process:

1. Describe your goals

Before starting, you should define what you want to achieve when migrating to digitization , improve the efficiency of the processes? Or attract or retain new customers through digital services?

However, you must take into account who will be in charge of leading the process and what support team will accompany it, whether the change will be made progressively or immediately and what data and metrics should be considered for that.

Otherwise, we will only go digital with the same deficient processes that we had previously but with a new presentation.

2. Study the competitors and their product offerings

The monitoring of the competition is a practice that must be done constantly both at the level of products and services, what is worth replicating with our personal seal, for example the quality and efficiency of our website, what rating would our digital services have with respect to what is offered in the market.

Likewise, constant education of our staff on digital trends and our clients on the security required in this regard is essential.

In this aspect, choosing to contract FinTech development services will be an excellent option, since it will make it easier for you to offer the same loan product through various digital platforms.

"The collaboration between fintech and banking entities, although it is in an initial state, in addition to generating greater competition, is promoting open banking initiatives for the distribution of services ", explains the Inter-American Development Bank in its research "Towards the digital transformation of public development banking in Latin America and the Caribbean ”.

Antit is a FinTech product developer company focused on offering this service in a highly efficient and innovative way. Specializing in mobile and Web developments.

3. Evaluate processes

The processes must be analyzed from the bottom up in terms of digital transformation initiatives, are our mechanisms optimal enough to allow the user to easily carry out all their processes in a timely manner?

How feasible it is for our clients to communicate with us with the same efficiency as would happen through a social network with a friend.

In this sense, the incorporation of a 24/7 electronic service platform that complements the traditional service channels will allow a great saving of time and even resources if self-service systems are included.

The goal is to develop a complete list of processes that will be digitized based on time and budget constraints, so you can focus your team's efforts on more strategic activities.

"100% of the Banks surveyed mentioned having digitization initiatives underway, however, only 70% stated that they had a unit in charge of digitizing the entity, in Central America only 62% have one" , indicated the IDB.

Currently, the National Bank for Economic and Social Development (BNDES), in Brazil, processes 98% of all its indirect operations in its online tools. In addition to significantly reducing internal transaction times and credit approvals, it has added more than 56,000 new clients and has connected its system to more than 44 institutions.

IDB data

4. Assess culture and willingness to adapt

In this, it is essential to make an assessment of the adaptability of the banking entity's work environment at the level of culture, leadership and above all organizational structure.

Likewise, it is necessary to train staff and involve them in a leadership process that allows consolidating long-term results from the agile adaptation in decision-making that show results of the digital transformation.

The spearhead of this sustained process can be from a head of unit to the bank's own presidency, always involving an empowered multidisciplinary team that facilitates rapid decision-making through agile methodology.

“Most banks train their staff on digitization issues (55%), however, the training is aimed at specific groups within their collaborators. Only 21% train their entire staff in digital matters , while 24% do not provide any training, ”the IDB explained in its study.

5. Analyze talent and hiring

You should perform an internal analysis of your entity regarding whether you have enough IT professionals and experts to make this leap to digital transformation, or if it is more feasible to opt for these services externally based on experience. , quality, innovation and time required in this type of hiring.

At Antit we provide you with highly qualified IT professionals with advanced skills, great adaptability, exceptional, talented and experienced who can easily adapt to your organization providing that extra you needed to complete critical work, efficiently and agile for the period that your company requires them.

6. Inventory systems and products

How often do you evaluate your products? Are there capabilities that you haven't taken advantage of? Do you have annual product planning activities that align with your budget and strategic plan?

Regarding this issue, it is necessary to evaluate how to make the most of the resources that your entity already has and in what way you want to improve your digital capabilities, what will be your route to follow to achieve the digital transformation objectives.

7. Define customer and member segmentation

With the incorporation of Big Data and artificial intelligence, there is a significant increase in the reliability of data analysis results, this for making operational decisions in the creation of products that are adapted in a more personalized way to our clients.

The objective is to have a program that defines how to predict which consumers are more likely to have and add digital services from the bank, leveraging greater growth.

8. Consider your communication and marketing plans

Do you have a strong internal and external communications program around your digital transformation? When designing your communications plan, consider:

  • Your approach to communicating with consumers
  • The best ways to build momentum and enthusiasm

Your goal is twofold: to develop an internal communications plan that clearly defines who needs to know what, and to create a marketing plan that outlines what your consumers should expect when interacting with your financial institution.

In addition, the addition of mobile applications will help you reach a larger audience by developing more direct marketing to your target audience.

At Antit we put at your disposal the teams that are best suited for the conceptualization of your project , design and implementation, facilitating the growth of your company in the technological age, thus becoming the best company for mobile applications and FinTech.

9. Conduct a risk assessment

Have you used your knowledge in areas such as manual process automation?

Your risk assessment can cover topics such as:

  • Pending regulatory activities
  • Regulator commitment
  • Partner and supplier evaluations
  • Risk and compliance team commitment

A comprehensive risk assessment will reflect potential areas of concern or focus within your digital transformation.

10. Prioritize

When strategizing for your digital transformation, try to identify quick wins, keeping in mind that while data, technology, and digital processes are critical to a successful transformation, your human resource is just as important.

When a common methodology is implemented to access and manage information, the people in your organization can provide insight and intelligence that leads to empowered decision making across the enterprise.

Likewise, strategic alliances with FinTech companies will facilitate their development and adoption of digital technologies that facilitate the transformation of processes to the digital age.

Melissa López
August 6, 2021