The reason it’s so hard to define digital transformation is because it means – or should mean – something different to every financial institution. In other words, the finish line may be the same for everyone, but the starting line will always be different. Sometimes simply adding a new layer of technology will work. Other times, you’ll need to step back and consider completely reengineering a process based on the availability of new technology. The key is to always be mindful of your accountholders’ needs and focus on creating the best possible experience for them.
In this episode of The Digital Banking Podcast, Blip Labs CEO Michael Bank explained what digital transformation in banking should look like. Bank and host Josh DeTar discussed the idea of having an aggregated financial picture, new ideas and expectations of the “younger guard,” and why automation is so important.
⚡Digital transformation has to be native and from the ground up. Every generation has brought with it significant changes in technology. Digital technology that seems so new and amazing to earlier generations is at best commonplace for today’s younger generations. This simple fact is a big driver in digital transformation. “You really need to have more of a ground-up, thought-through strategy for a digital banking experience,” said Bank. “From the conversations that I’ve had with people, a lot of what that looks like is doing what people are used to doing, but in a much more native digital way. So really being able to embed yourself as the financial partner – as opposed to just taking a PDF version of what you had on a website and putting that into a mobile experience – because that’s not going to be as much of a digitally native experience.”
⚡ Driving change with data. Fintechs have done a great job of using data effectively. While partnering with fintechs is becoming increasingly popular, that movement points to a larger strategic objective: making the best use of the data your institution has available. “A lot of the types of technologies that have been coming out are more iterations on existing or legacy types of technologies,” noted Bank. “This is where the fintechs have done a really great job of being able to create new and innovative, clean-sheet-of-paper ideas. And there’s no reason why a community FI is not able to do something similar … The only way to capture that newer generation is to do new things.”
⚡ Sometimes digital transformation means starting from scratch. Digital transformation melds technology into an organization’s products, processes, and strategies. According to Bank, it’s important for FIs to start fresh from the ground up instead of just trying to tweak an old process. He suggested starting with the end goal and working backward with the best user experience in mind. “Think about it from the perspective of how we think about what our end goal is and what we want that experience to be for our customers and for our members, and how do we ultimately go about achieving that in a digitally native, thoughtful, unique, interesting, and new way,” he concluded.