What is this digital transformation of banking?

Digital transformation of banking
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Today, we know that the digital transformation goes beyond simply opening up new sales channels. The digital transformation is a change of culture that will affect the entire value chain, including our relationship with our customers. Within the roadmap banks to enter the digital world must include terms like usability, millennials, big data, blockchain or cloud. However, they pose to banks certain challenges in managing digital transformation…

Management culture, talent, priorities and preferences

Banks face a digital revolution that is occurring at an ever-faster pace. It should ask whether their managers know that it is essential this transformation, if these managers can lead the change, have the foresight to manage merging the two worlds … the power allocation priorities rests with management and, therefore, as the needs of the digital transformation are prioritized. Guessing the decision, we make will, in one way or another, if we will position strategically and competitively. Note that happened in other sectors when it has begun the process of transformation, especially in the retail and digital companies. I.e. access and adapt practices from other sectors of the financial sector, so that value is generated and differentiate from the competition.

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Manage innovation and customer channel

Innovation in business models and processes has a double impact. The first is to note that it is necessary to reflect on the strategy that allows us to measure the intensity and the time that we will make the investments. Second, you should consider is the challenge of internal change for innovation to generate such business models and processes. In the banking sector is not trying to decide between office network or online channels. It should be understood to be breaking with the vision of multiple channels and should start managing as if it were a single channel. Management as a single channel begins with the execution of how they manage to take advantage of its assets, commercial network capabilities, with its digital customers and how they will get to interact with those customers in a fully digital world, where there are no timetables. Therefore, the challenge is how they will manage the channel to get customers who are not as digital, can take advantage of the benefits offered by the digital world.

Manage value creation and efficiency

The digital revolution brings an important purchasing behavior of users and customers change banks. The banks have to leave your comfort zone to generate value to its customers. They should be asked how they could create value for small businesses that have sought to internationalize, how they can create value for customers who want to move forward with an entrepreneurial project or a customer who is considering several investment options. Thus, financial institutions should consider having competitive products and quality, although not enough because they need to create value in the digital world. The first efficiency challenge they face financial institutions is on the internal use of digital capabilities that enable organizations to streamline processes and make them more efficient. The second challenge of efficiency they face financial institutions is about optimizing their resources. That is, how the operational load distributed through channels to improve efficiency enduring all this increased volume of transactions.

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Managing technology and cybersecurity

Banks must manage two technological models. The first is a traditional model in which there are some times insufficient development speed required for the digital world. And the other model, the agile model, which optimizes development cycles and accelerate implementation times. We know that the digital world exposes us to certain risks and threats. This forces banks to develop programs of cybersecurity. It is vital, in these programs cybersecurity, protect brand assets, intellectual property and customer information to the various threats that exist in the virtual world.

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