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Become more digital: What are the steps banks should take to become more digital?

Digital has changed the way we bank. The need to be digital to succeed is no longer limited to a specific area or function. Banks now require a high level of digital capability across all areas of the organization—from strategy and operations to technology and workforce—to stay relevant in today’s fast-changing environment. As more customers move their banking transactions online, banks must upgrade their capabilities with technology and processes to meet new customer expectations. Here’s what you need to know about becoming digitally capable as a bank, including what it means for banks and recommended steps for implementation.

Recognise the importance of digital transformation

Business transformation is an ongoing process for banks. Transformation is about changing the way banks do business. It aims to streamline operations, improve productivity, and drive higher customer satisfaction. Digital transformation is the next phase of business transformation, as banks use digital technologies to transform their business. Digital technologies are transforming the way banks operate across the organization and are central to their strategy. Although challenges remain, banks are increasingly transforming operations with digital capabilities.

Adopt a digital mindset

Banks need to become more agile and adaptive to remain competitive in a fast-paced environment. Organizations with strong digital capabilities respond more quickly to business conditions and customer needs. It’s important to have a digital mindset—a core set of values, attitudes, and ways of thinking that are essential for digital transformation. A digital mindset is about embracing a new culture and way of doing business across the organization. Banks need to be open to experimentation, adopt new ways of working, and have a strong focus on customer needs. Executives need to be committed to digital transformation to implement the changes needed for digital capability.

Build digital capabilities

As banks transform their operations with digital capabilities, they should focus on five areas of digital capability: strategy, operations, technology, workforce, and governance. The strategy and operations areas are core to the bank, while the technology, workforce, and governance areas are necessary support functions. All five areas are important to digital transformation, but the emphasis varies. Banks should assess the current state of digital capability and gaps across the five areas before they begin digital transformation.

Leverage data to drive business insights

Data is central to digital transformation: banks collect and analyse data to enable new products and services, create personalised experiences, and drive operational efficiencies. As banks collect more data, they can also anticipate future trends and customer needs. Organizations with strong data capabilities are better positioned to predict and respond to trends, customer needs, and other factors driving change. Banks can then analyse data to make better decisions and identify areas for improvement. Data is central to the strategy, operations, and technology areas of digital capability. The workforce and governance areas are less focused on data, though data is necessary for governance. As banks transform their operations, they should integrate data across the organization to drive business insights.

Conclusion

The banking industry is in the midst of a digital transformation: banks are upgrading their capabilities with new technology and processes to meet customer expectations. The need to be digital is no longer limited to a specific area or function. Banks now require a high level of digital capability across all areas of the organization—from strategy and operations to technology and workforce—to stay relevant and provide customers with an excellent experience.

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Become more digital: What are the steps banks should take to become more digital?

Digital has changed the way we bank. The need to be digital to succeed is no longer limited to a specific area or function. Banks now require a high level of digital capability across all areas of the organization—from strategy and operations to technology and workforce—to stay relevant in today’s fast-changing environment. As more customers move their banking transactions online, banks must upgrade their capabilities with technology and processes to meet new customer expectations. Here’s what you need to know about becoming digitally capable as a bank, including what it means for banks and recommended steps for implementation.

Recognise the importance of digital transformation

Business transformation is an ongoing process for banks. Transformation is about changing the way banks do business. It aims to streamline operations, improve productivity, and drive higher customer satisfaction. Digital transformation is the next phase of business transformation, as banks use digital technologies to transform their business. Digital technologies are transforming the way banks operate across the organization and are central to their strategy. Although challenges remain, banks are increasingly transforming operations with digital capabilities.

Adopt a digital mindset

Banks need to become more agile and adaptive to remain competitive in a fast-paced environment. Organizations with strong digital capabilities respond more quickly to business conditions and customer needs. It’s important to have a digital mindset—a core set of values, attitudes, and ways of thinking that are essential for digital transformation. A digital mindset is about embracing a new culture and way of doing business across the organization. Banks need to be open to experimentation, adopt new ways of working, and have a strong focus on customer needs. Executives need to be committed to digital transformation to implement the changes needed for digital capability.

Build digital capabilities

As banks transform their operations with digital capabilities, they should focus on five areas of digital capability: strategy, operations, technology, workforce, and governance. The strategy and operations areas are core to the bank, while the technology, workforce, and governance areas are necessary support functions. All five areas are important to digital transformation, but the emphasis varies. Banks should assess the current state of digital capability and gaps across the five areas before they begin digital transformation.

Leverage data to drive business insights

Data is central to digital transformation: banks collect and analyse data to enable new products and services, create personalised experiences, and drive operational efficiencies. As banks collect more data, they can also anticipate future trends and customer needs. Organizations with strong data capabilities are better positioned to predict and respond to trends, customer needs, and other factors driving change. Banks can then analyse data to make better decisions and identify areas for improvement. Data is central to the strategy, operations, and technology areas of digital capability. The workforce and governance areas are less focused on data, though data is necessary for governance. As banks transform their operations, they should integrate data across the organization to drive business insights.

Conclusion

The banking industry is in the midst of a digital transformation: banks are upgrading their capabilities with new technology and processes to meet customer expectations. The need to be digital is no longer limited to a specific area or function. Banks now require a high level of digital capability across all areas of the organization—from strategy and operations to technology and workforce—to stay relevant and provide customers with an excellent experience.

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