The Importance of Digital Transformation in Banking

In today’s fast-paced marketplace, financial institutions must embrace digital transformation to stay competitive.

Fremont, California: Many people believe that digital transformation is just about developing new digital products and services, but it’s much more than that. The digital transformation of financial institutions means refocusing on the customer experience (CX) journey.

Digital services such as online banking portals and mobile apps have become the norm in today’s financial scene. In two respects, financial institutions stand out. First, by ensuring that the omnichannel customer experience (web, mobile, call center and in-branch) is consistent across all channels. Second, they can produce unique and personalized items based on their customers’ real demands because they know them so well.

Banks can better understand how to use new technologies and data to create better, more personalized experiences by mapping the CX journey through every touchpoint. Opening an account, issuing a card and, subsequently, lending can all be part of a financial journey. There will be many touchpoints along the way, including online, mobile, in-branch and over the phone.

The digital switchover is a warning in this regard. Fintech has reached critical mass, with 88% of American adults already using it. As a result, customers are more likely to compare their banking experience to their experience with fintech apps. While this does not negate the importance of in-person banking, it does indicate that banking consumers expect to conduct the majority, if not all, of their banking transactions through digital channels.

While customer touchpoints help set the tone for digital transformation, internal processes are just as crucial. Internal systems and processes, in fact, are often where banks get bogged down. A consistent omnichannel experience is impossible without seamless systems and processes supporting front-end solutions.

Behind the scenes, digital transformation can include breaking down data silos by linking different data systems and moving from manual operations to automated and digital operations. It can also mean integrating emerging technologies such as artificial intelligence, machine learning and cloud-based systems in a way that benefits both the customer experience and the bank’s bottom line.

Digital transformation for financial institutions is about matching their customers’ experiences with the seamless digital experiences they have in their daily lives. The ultimate goal is to make banking as seamless and personalized as social media, e-commerce or streaming entertainment.

Financial institutions must adopt digital transformation strategies and best practices to ensure they remain relevant in the face of ongoing disruption caused by new technologies and startups. Creating new experiences that consumers love throughout the CX journey is a guaranteed method for financial institutions to retain and win customers in an industry subject to rapid change.

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