If you work in the financial space, you have likely heard talk of digital transformation. So what does digital transformation really mean? In short, it refers to the integration of technologies to assist in efficiently carrying out all fundamental tasks of a business. For financial institutions, this can include everything from compliance to customer service.
Implementing digital transformation is a major investment of both time and money that many financial institutions have already taken on. Successfully adapting to this transformation will be the difference between success and failure for many businesses in the coming years.
Digital transformation affects all aspects of a business. As such, the sooner a financial institution can begin its own transformative journey, the better. Let’s talk about the long-term benefits within your organization by investing in the technologies that the digital era has introduced.
The financial and banking industry has historically been resistant to technological evolution due to various factors such as security and compliance as well as the time it takes to implement a new product across the organization. Despite this, in the last couple years, financial institutions have become more open to making this digital shift. This is largely due to the Covid-19 pandemic disrupting traditional forms of business, requiring banks to adapt digitally.
BDO has recently released a 2021 Financial Services Digital Transformation Survey which polled 100 C-Suite banking, credit union, and lending executives to examine the current state of digital transformation within the industry.
According to the survey, 61 percent reported adding new digital projects. Additionally, 51 percent stated they are introducing new digital revenue streams and 49 percent reported joining or expanding a digital partner ecosystem.
The survey further states:
“Amid an increasingly competitive industry landscape, financial institutions recognize that executing on their digital strategy swiftly and effectively can deliver an impactful advantage.”It is a known fact that for financial institutions to be successful, their customers must betheir number one priority.
This customer-centric approach inherently lends itself to digital transformation, as customers are increasingly expectant of fine-tuned digital services.
With channels of communication becoming much more accessible, as well as product life cycles decreasing substantially, customers are looking for speedy and personalized services. Now more than ever, consumers are concerned with which institutions are catering to their exact preferences and needs.
Through investment in digital transformation, this focus on the customer is greatly enabled.
The survey mentioned above provides the information you need to know about your competitors – they are developing digital transformation strategies and are doing so at an enhanced pace.
Simply offering digital services is not enough – financial institutions must leverage technologies such as the cloud and AI to differentiate themselves from their competitors. To maintain a competitive edge in the coming decades, institutions must work to take the technological lead.
Digital transformation enables institutions to enhance their business model with better communication, heightened security, and far greater accuracy in essential tasks, i.e. risk management.
Falling behind in this age of digital disruption can have dire consequences. Hence, the sooner an institution can adapt, the better.
Though maintaining a customer-centric approach is essential, a financial institution must also be aware of how well it supports its employees.
A major benefit of digital transformation is its ability to improve the support your team will receive. Through this support, employees can achieve much higher levels of productivity.
Digital transformation implementations can boost employee productivity in 3 key ways:
1. Reducing Burnout: Automation of necessary activities – such as compliance – can greatly free up more employee time. This results in employees feeling less like their time has been spread thin and allows more time to be spent committed to improving the customer experience.
2. Enabling Innovation: Another benefit of having more free time is that employees can focus on conceptualizing and performing new innovative ideas. In fact, heightened innovation is one of the main advantages of a fully digitally transformed institution.
3. Increasing Collaboration: Digital transformation helps to break down departmental barriers and open new lines of communication. Through this, employees can work together and collaborate with much greater ease – and projects can be completed with more creativity in less overall time.
As a financial institution, your business is constantly having to analyze client needs alongside market fluctuations.
Digital Transformation uses Predictive Technology (AI) to better anticipate the needs of both your customers and the broader financial markets. Through the use of highly accurate AI prediction models, financial institutions can stay ahead of the curve when it comes to market shifts and changes.
A primary benefit of this kind of predictive power is being able to make smarter and more well-informed investments. This, in turn, maximizes the overall value for a financial institution.
While adopting digital transformation, you should consider a deep collaboration tool like TRIYO, that can enhance your current workflows. TRIYO is a deep collaboration software that transforms the way businesses collaborate, unifying distributed and multi-functional teams. Leveraging the API economy, it allows users to continue working on their existing tools that they are accustomed to, such as MS Office, G-Suite, JIRA, Salesforce, and more. It also significantly reduces the need to carry out time consuming, manual tasks such as version control, tracking emails, unnecessary meetings and follow up calls by capturing this information in the background as users work on their tasks.
Looking forward to the future for financial institutions, means acknowledging and embracing the significance of digital transformation. By investing in digital transformation, institutions can better serve their customers, boost the performance of their employees, and maintain a strong competitive edge.
Undertaking a full digital transformation can be a huge endeavor for financial institutions – especially if they are starting from scratch.
CPQI recognizes the importance of optimizing your systems according to the specific needs of your business. CPQi is an IT company that focuses on providing consultation for digital transformation, artificial intelligence, cloud migration, managed services and DevOps. They offer consulting services, as well as full digital transformation projects to help you achieve the ideal digital business model. They help companies strategize, adopt, and effectively use Salesforce, AWS, Azure, Moody’s CreditLens, and more, for their business to enhance team productivity.
For more information on how TRIYO can transform your financial institution, take a tour through our free interactive demo, or fill out the contact form below!