Recently, banking has seen an influx of new technologies that help transform the industry. Innovations such as cloud-native development and digitalisation are transforming how we do business with our customers and helping us serve them better than ever before.
A bank’s success in this changing landscape hinges largely upon its ability to stay current on all things technology related – from adopting cutting edge platforms like blockchain or AI robots for customer service.
Investing time into understanding trends including chatbots which have recently become quite popular among consumers. Banks are rushing to adopt new technologies and services to keep up with their digital peers.
In addition, the cloud allows banks to focus on their core business while relying on service providers to manage operations. Some of Europe’s top banks have sustained digital transformation by using cloud architecture to create new business models.
Matt Davis, Head of Cloud Engineering at Lloyds Banking Group has been implementing digital transformation for the company. They’ve been adamant about switching over to a cloud-based system because it provides many benefits, including improved security and accessibility which can be hard on traditional systems with limited storage space or network bandwidths.
Matt said, “it’s not just about building the technologies, but about building systems that engineers want to use and can scale as the transformation journey progresses.”
So it’s no wonder that the banking and financial services industry is turning to digital transformation to keep up with the competition.
7 Reasons Why Digital Transformation is so Important for this Industry
1. To provide a better customer experience
Banks are facing increased competition from non-traditional financial services providers; to meet the consumer demand for better digital experiences, banks must transform their operating model to be customer-centric.
A digital transformation journey can help banks better meet customer needs in an omnichannel world. It starts with creating a customer-centric strategy and roadmap that defines how the bank will engage customers across channels.
One of the main goals of digital transformation is to provide a better customer experience. This can be done by making it easier for customers to do what they want to do, such as transferring money or checking account balances.
It can also mean providing more personalised services, such as recommendations for products and services based on past transactions.
2. To offer new products and services
It is important to acknowledge that digital transformation offers new products and services, but the process is not always easy. There are different elements involved in this, including some human factors which are key for organisations to consider.
Digital transformation allows banks and financial services companies to constantly generate new products and services thanks to increased access to information.
A customer’s past transactions, account profile, and location can all be used to provide personalised recommendations of new products or services that may interest them.
3. To cut costs
Digital Transformation is all about making the most of technology to improve performance and efficiency. It can help organisations to reduce costs by automating processes, improving communication and collaboration, and making better use of data.
Digital transformation is costly up-front but over time, it will help cut costs. This is done by streamlining systems, eliminating redundancies, and simplifying processes.
It can also be done by cutting out middlemen. For example, a bank may use an outside company to help with certain digital functions such as mobile payments or customer service inquiries.
If those tasks can eventually be performed by the bank’s employees thanks to digital transformation, customer service costs will go down.
4. To stay competitive
Customer expectations are rising thanks to digital technology. Customers expect the same convenience and ease of use they experience with their smartphones or tablets when using other aspects of their lives, including banks and financial services companies.
If these institutions don’t provide the same level of service, customers will take their business elsewhere.
5. To be innovative
Digital transformation is ongoing. There are always innovations that can be implemented to improve customer service, cut costs, and stay competitive with other financial institutions or companies that offer similar services.
Over time digital transformation will become more of the norm than the exception, which makes it integral for banking and financial services companies.
6. Improved security
Security is always a concern for banking customers, and it is even more important in the digital age. With more and more businesses going digital, banks must have a strong security infrastructure in place to protect their customers’ data.
Digital transformation can help improve security in a few ways. For example, it enables banks to use technology like biometrics to verify customers’ identities.
7. Increased Efficiency
Digital transformation can help automate many of the processes within an organisation, leading to increased efficiency.
This is because digital technologies allow for the quick and easy sharing of information between employees, as well as automated workflows that can help speed up tasks. Automation can also help reduce human error, which can be costly for businesses.
Overall, it is beneficial for banks and financial services companies to take advantage of digital transformation.
It will allow them to provide better customer service, offer new products and services, cut costs over time, stay competitive with other similar institutions, and continue being innovative in the changing landscape of finance.