I recently blogged about a four-step process for executing a bank’s digital agenda.  Our experience shows that when it comes to executing such an agenda, there are a number of factors that increase the likelihood of success:

  • A clearly articulated digital agenda, with shared priorities and clear targets;
  • Governance adjustments that reflect new goals;
  • A digital culture that is disseminated throughout the organization;
  • Business objectives that are aligned with key levers, with clear accountability;
  • Speed of execution;
  • End-to-end (E2E) process transformation, aligned with simplification of the customer journey;
  • Digital performance management, starting with customer indicators; and
  • Enabling the technology platform to provide reach and flexibility.

Without these elements, banks face the possibility of slow uptake and a low return on investment. But, even if these factors are in place, banking executives need to pay careful attention to selecting and managing the digital enablers necessary to execute the transformation, both in digital and physical (branches, contact centers) terms.

This is ultimately about understanding how much to invest, and where. Activities undertaken need to be effective in improving distribution and marketing metrics. They should either a) increase revenues through cross- and up-selling, and the introduction of new streams; b) reduce distribution and marketing costs; or c) increase customer engagement (such as net promoter scores) by providing superlative customer service at all touch points, and even beyond the bank.

Speed is of the essence here. In an accelerated consumer-to-business (C2B) world, playing catch-up will not suffice.  The Google/Apple/Facebook/Amazon (GAFA) players and other competitors are moving quickly, so it is critical for banks to think innovatively and seize opportunities rapidly. Otherwise, they risk becoming yet another casualty of the GAFA juggernaut, which has already disrupted many businesses in other industries.

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