- 21 December 2018 13:06
Hyland outlines three strategic shifts critical to successful digital transformation for financial institutions
Is your financial institution ready to take on digital transformation?
Three strategic shifts:
Here are three areas where making strategic shifts can affect change in your organization:
1. From board of directors to board of visionaries
According to Alliant Credit Union, a board of directors “holds management accountable while overseeing operations and ensuring a company’s executives are moving the organization in the right direction.”
Alliant is one of the nation’s top 10 largest credit unions, and it has a board of directors that takes its role in setting the organization’s strategic vision seriously. The organization’s focus on providing “state of the art, digital-based services” to members has driven the organization to eliminate paper processing, partner in the creation of a custom fraud management solution, and utilize intelligent capture and electronic workflow to automate processes.
However, knowing your institution’s vision should include digital transformation and knowing whether you’re equipped to move the organization forward on that path are different realities. If this is a murky area, the solution may be having your board assess its own understanding and adoption of technology.
With this information in hand, you can begin to build out a new model of leadership that weaves digital transformation into every aspect of your business plans.
2. From technology strategy to business strategycontent services and digital transformation
Indeed, some institutions are finding they can no longer discuss business strategies without considering technology. Florida-based BrightStar Credit Union is one of them. The organization, featured in a recent article on BizTech.com, has made a huge push to bring an enhanced mobile experience to its members.
With the increasing amount of consumer interactions that take place on mobile devices (Google says customers have double the interactions with brands over mobile devices than all other mediums combined), it’s not surprising that BrightStar is focusing its new customer experience strategy on mobile.
“There are only so many branch locations we can have,” BrightStar CIO Matt Meyer told BizTech. “It’s a challenge to make sure there’s always a branch right next to you — that’s impossible. But with today’s technology, I can put that branch right into your hands.”
Technology strategy? Check. Business strategy? Super check.
3. From piecemeal digitization to digitizing entire customer journeys
Digitizing certain processes can help speed interactions, but digitizing entire customer journeys is where financial institutions are finding the most value. That journey is all about leading your customers or members down a path from discovering a product or service to actually making a purchase or taking a desired action.
For example, “one large bank redesigned its credit lending journey and cut the timeframe from application to funding in half, shaving 30 percent in costs associated with the process,” Boston Consulting Group recently told The Financial Brand. “Another bank tackling the same journey saved $200 million over four years.”
Those are huge numbers. Ready to redesign all of your customer journeys?
Not so fast.
It’s better to focus on finding the journeys with the most potential for improvement and tackle them one at a time. Why? Discovering the right journeys for digital transformation takes time and resources to dig into “customer transaction histories, call center logs, and online data to identify those points in the journey that are causing the most pain,” as explained in the Financial Brand article.
I think I can, I think I can The institutions mentioned above have accomplished board members, sophisticated technology-focused business strategies, and the solutions needed to create full digital customer journeys. But they haven’t always been that way.
In fact, prior to its digital transformation efforts, it took Alliant two to three weeks to process just one invoice and four to five hours to do the monthly fraud reporting. But, with the right technology, Alliant took the focus away from these painstaking manual tasks and put it back on their members.
So now is the time for you to shift. Shift away from thinking that digital transformation is too big to undertake. Start believing that you can take these big ideas back to your organization and move the needle on digital transformation.