Individuals now demand a similar customer experience when managing their finances as they enjoy from the likes of Amazon and Google – and if they don't get it are quick to look elsewhere.
The market today is strewn with innovative fintechs and challenger banks keen to take a profitable slice of the action. So it's no wonder that digital transformation is top of the agenda for more traditional, established banks as they seek to compete and thrive in this new banking landscape.
Defining what digital means is open to interpretation, however; what banks think of as 'going digital' varies widely. For some it means allowing consumers to manage their finances themselves via online and mobile banking. There are many examples of how banks have enhanced their customer-facing, front-end operations with digitalchannel solutions in an attempt to deliver such service. But being truly digital – and able to take advantage of the massive opportunities for profitable growth and improved efficiencies that digital brings – requires more radical change. As well as allowing customers to do all their financial management themselves, it also means doing what they ask in real time. This is not possible unless the bank also transforms its back office processes and systems to make them straight through and remove bulk.