We live in an age of unprecedented digital convenience of comfort food, online retail, and on-demand transportation. Our customers, also the consumers of these services, continually reset their expectations from digital banking services based on their experiences in other industries. What’s more, banking is not only at the center of all this incredibly fast digital exchange but also a key enabler that cannot afford to miss a beat. Banks looking to make a mark in this digitally accelerated universe that is our lives must be truly digital. Being truly digital requires instilling speed and adaptability in every aspect of the business.
Against this backdrop, all banks have embarked on a digital transformation journey in some form or shape. However, despite elaborate strategies, few banks can be said to be truly digital. Not that banks are not providing digital banking services today, but how agile they can be and how quickly they can offer new digital services and experiences in the future is the litmus test and mark of a digital bank. The starting point towards this end state is a clear definition of what being truly digital means. And no definition is complete without a discussion about customer engagement.
The prescribed approaches
The spectrum of approaches available ranges from cosmetic fixes such as new channels for old services to digitizing the entire infrastructure.
New digital banking channels integrated with and built over legacy systems can ultimately be only as good as the backend systems. Even the most digitally optimized channel approach or architecture is limited by the efficiency (or lack thereof) of the underlying systems. For example,…