Digital transformation in Digibank - 5 important thoughts and 6 process steps to understand

5 mindsets to ensure a successful digital banking transformation

A digital banking transformation will turn out to be a severely disruptive event for your customers and employees, events that have the potential to become catastrophic if not properly planned (loss of customers and staff).

Here are 5 mindsets to ensure a successful digital banking transformation:

1. Need to see this as more than just an IT project

While the bank's IT team will be primarily responsible for the technical implementation, digital transformation within the bank needs to be a comprehensive, cross-departmental coordinated effort.

It should include team members from the contact center, customer experience management, and marketing. The output should not only be a comprehensive communication strategy, but should also be a clear sketch documenting all the changes that both customers and employees will experience. The bank will need to develop a series of guidelines for this change, including for customers and employees, across all departments and branches.

2. It should be recognized that the digital transformation of banking is a big project

The bank needs to see this as a large-scale, important and exciting project for both your customers and employees. The project starts with small messages explaining what is happening and why. As the date draws closer, you need to clearly articulate the impacts (our digital banking will go X) and more importantly, what your customers need to do (e.g. download new apps, sign up, perform security operations, etc.).

These messages need to be consistent, useful, and reflect the importance and scale of the bank's digital transformation event.

3. Focus on content, resources, and frequently asked questions (FAQs)

The biggest challenge with integration projects is deploying content that is consistent across departments and actually usable. Marketing can create outlining messages about the “what, why and when”, but when say about method, it is usually handled by another department (usually the technical department).

To create an effective experience, all of this content needs to not only work together, but also be housed in a centralized document base that can be consistently deployed across channels. Giving customers access to this content enables them to self-service, which not only results in a better experience, but also reduces the number of calls to your contact center.

4. Need to deploy across all customer touchpoints and channels

Banking customers today have different preferences and ways in which they expect you to communicate with them. While some like email, some like social networking, some like texting and others like sending mail.

That means you need to deploy your support and communication content across social media, website, email, direct mail, internal calls… Wherever your customers are often used. Another extremely useful channel is the "staff channel". The system of hundreds and thousands of employees and their communication on social networks is a great way to promote and communicate with customers.

5. Don't Forget About Employee Experience

Employees fear and dread the transformation of digital banking. They spend a lot of time preparing and worrying about the number of impending calls and customer visits, most of which won't be pleasant. In addition to a well-executed customer referral strategy, you need a well-designed and implemented employee referral strategy.

Not only does this mean proper contact information, but also easy access to and reference to scam boards, guides, and resources. They also need to be able to provide real-time feedback to unforeseen questions, instructions that aren't detailed enough, and need more information. They need to feel heard and they need the tools to do their job.

6 important steps in the process of bank number conversion

To ensure successful digital transformation, banks need to take six steps:

Step 1: Digital Direction & Strategy

Banks need to accurately determine the focus and strategy of digital transformation in line with the business strategy

Step 2: Analyze the problem

Banks need to redesign the process based on the customer experience journey, the goal of optimizing operations. For example, managers need to deeply understand and analyze the real pain points when customers use payment services, open cards, take care of customers. From there, come up with ideas for suitable digital initiatives to solve the problem

Step 3: Build a digital transformation roadmap

The bank builds the budget, creates effective computational modeling and builds the Digital Transformation roadmap in line with the bank's goals and budget

Step 4: Implement & Monitor

The bank clearly defines KPIs to track the results of each digital transformation project and ensures the best technology is used, deployed in the fastest time.

Step 5: Evaluation & Confirmation

The evaluation and confirmation of the results help banks have more updated information, in order to make appropriate improvements for the project to achieve the desired effect.

Step 6: Report & Improvement

Regular performance reporting and improvement are important actions to ensure a successful project, consistent with implementation status and in sync with other digital transformation projects.

7 most commonly used technology solutions and applications in banking digital transformation

Solution 1: Apply electronic payment solutions

Electronic payment solutions such as electronic payment gateways, electronic cards or electronic wallets are becoming more and more familiar and popular with consumers. Instead of performing transactions with the complicated and time-consuming process of traditional banks, Fintech companies will perform those operations more centrally and simply. This brings convenience, speed with high security and helps to reduce the bank's operating costs.

Solution 2: Peer-to-peer borrowing (P2P Lending)

P2P peer-to-peer lending is a business model designed and built on a digital technology platform. P2P helps directly connect borrowers with lenders (investors) without going through financial intermediaries.

This solution is especially suitable for those who have difficulty in carrying out financial proof procedures. The service delivery cost of this model is much lower than that of the traditional lending model. As a result, P2P can offer more competitive interest rates to both sellers and buyers.

Solution 3: Widespread application of Blockchain technology and digital currency

In the banking industry, blockchain technology is most widely known for creating cryptocurrencies. Cryptocurrency transactions take less than 1 second to complete the entire transaction steps. From there, customers can make transactions faster, cheaper and with higher security than current financial services.

In addition, blockchain technology can also be applied in other cycles of automatic payments including:

• Smart contract
• Strengthening the supply chain
• Complaint handling
• Reduce the risk of human error by minimizing redundant, repetitive and manual tasks

Solution 4: Apply artificial intelligence (AI)

AI enables identification of transaction anomalies, minimizing the risk of fraud and money laundering. By analyzing past market data, AI helps financial institutions make faster and smarter decisions.

In enhancing customer experience, AI helps service providers analyze psychology, behavior, and personalize customer experience. The example automatically recommends products based on a customer's current consumption habits and financial status.

Solution 5: Applying biometric technology

Biometric technology (voice, face, fingerprint or iris recognition) greatly reduces the possibility of spoofing, increases security and speeds up transactions exponentially. This technology is being applied mainly in transaction confirmation, credit guarantee processes, etc.

Currently, this application is increasingly popular and has become one of the prominent trends of the banking industry.

Solution 6: Big data application (Big Data)

Applications of big data and data science help financial institutions collect all the data about their customers over the long term and exploit this information in the most efficient way. The analysis of data also allows to understand and predict the needs of each individual customer, organization

Solution 7: Develop security technologies

Due to the popularity of the internet, the issue of cybersecurity and privacy protection is one of the important issues in the next decade as attacks and intrusions become increasingly sophisticated and diverse.

Recently, a number of large-scale cyberattacks, causing serious impact in recent years. They show holes in the bank's security. Therefore, the development, upgrading and application of advanced security technologies should be prioritized for consideration. This is also one of the vital problems of financial services business organizations.

Summary

Digital transformation is an essential trend and will bring great benefits to organizations in the banking and finance sector. For more detailed advice on appropriate and effective digital transformation solutions for the banking industry, please contact CMC TS immediately.

CMC TS is proud to be the TOP 1 unit in consulting and implementing Digital Transformation and Security solutions for organizations and businesses in Vietnam. CMC TS is currently a partner in implementing IT, digital banking and digital finance projects for many banks - financial institutions and securities companies in Vietnam such as BIDV, VietinBank, Vietcombank, Techcombank, ABBank, CoopBank, PVcomBank, etc. ...