It won’t be any exaggeration to call digital transformation and banking synonymous. Digital disruption is touching the banking sector at every level. Given the choices available to the customers today and given the dramatic changes in the behaviour of millennials, banks and financial institutions – both in B2C and B2B spaces are compelled to attend the needs of their customers. While on one hand the new digital banks are at an advantage, even the incumbent have become increasingly aware of the scenario and are catching up fast to become digital or digitally-enabled bank.
What Does Digital Transformation Mean for the Banking Industry?
Digital transformation means different things for different people and different organisations. Increasingly, banks are thinking and working in innovative ways. Digital is a high priority for banking organisations and they are all moving at a fast pace. Digital is also instrumental in fundamentally changing the economics and competitive landscape. With serious competition coming from the fintechs and digital wallets and other non-banking players, banks are not only readying for a fierce battle for market share but also to safeguard their relevance. And therefore, digital transformation is not just about online enablement or a mobile app.
Excerpts from the Chapter by Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank in the Book Titled “Accelerating Enterprise Innovations”
It’s about speed, connections, interactions, and convenience, which are driven by intelligence and are proactively pre-emptive. Banks should be able to reinvent the customer journey by leveraging the power of data and redefining business model, and finally aiming at a digitally-driven organisation.
For me, it is not just about technology or automation but also about re-imagining the entire customer journey. I am a firm believer of the fact that if a transformation journey has to begin and succeed, it has to have the customer at its center. It’s all about customer experience, friction points and the value for the customers only. Transformation combines strategy, customer expectation, delivery model and key business values, which can be revenue, profit and growth among other outcomes. In order to enable all of this, the steps taken are what make the digital transformation complete.
The starting point for any transformation project is about the business problem or the customer problem it aims to solve, and the ways and means to do that. Many a times, it also involves revisiting the whole process and journey and not just automating (as is a typical case) your current processes or workflows. A lot of people tend to directly link it with the adoption and use of technology. However, at times it may not be a lot about technology, but about simple interventions. For example: Ensuring that a customer, when s/he is out of home, knows about the availability of particular services or facilities. Or something as simple as blocking a debit card when a customer is traveling internationally to prevent any potential misuse. An organisation should be able to provide these facilities to its customers without hassles. That, to me, is a real case of digital transformation.
Excerpted from the Book Titled “Accelerating Enterprise Innovations“