RiskCALM4® The Future of Banking – E-commerce (Part 2) Digital Transformation The Customer Journey
Digital Transformation
80% of financial institutions believe that digital will and is changing how financial institutions compete. 80% also believe they are behind in their digital strategy. How do financial institutions transform their digital capabilities, including the speed and convenience of Internet functionality while integrating personal interaction digitally with appropriately timed physical presence, providing the customer a seamless, easy and convenient journey?
According to Boston Consulting Group, to undertake a digital transformation will require, “… banks and credit unions to stretch outside their comfort zone; …”
A digital transformation strategy, according to the Boston Consulting Group, requires that banks and credit unions focus on four pillars:
- Reinvent the customer journey
- Leverage the power of data
- Redefine the operating model (Digital access)
- Build a digital driven organization (Data management facilitating communications)
The Customer Journey
How the financial institution reinvents the customer journey, through the Internet, is the most critical consequence of a digital plan. As we previously discussed, the Internet has spawned a customer that demands ease and convenience. Fortunately, RiskCALM4® is a product that any financial institution could use as the foundation for their digital transformation program, with the ability to automate business processes through multiple delivery channels and with digital intelligence capable of accessing predictive analytics. All while managing risk through an integrated automated compliance of IFRS 9 and AML. It also has the flexibility to incorporate your policies and communication requirements dynamically, in branch and online environments.
While all visionary solutions are by definition transformational, they also need to be transforming, as such, a continuum, minimizing any extreme paradigm shifts that disrupt current growth. What is the importance of a transformational, forward looking solution? If you cannot comply with IFRS 9 forward looking requirements, dynamically, during the lending process but rather you have to stop and go to another application or a spreadsheet; how’s that going to play online, where everything is instant gratification, where responses are measured in seconds not hours? How transformational is it if you cannot validate an account entity, opening an account, for days or weeks? Effectiveness online isn’t filling out a loan application form and sending it to be processed or asking your new account to wait hours or even days to open an account. The customer demands that automation be capable of assisting borrower or depositor; on product selection, expense analysis and solutions, pre-approvals or approvals, cross-selling, etc., all without the institution’s physical presence or interaction.
Financial institutions realize that they must utilize technology and data, to provide their customer with a nonstop, bespoke solution, creating an easy, seamless and convenient customer journey. A journey that, when repeated, produces trust, which is vital and important in building loyalty. Quality service cannot rely on being pleasant and personable, to compensate for performance failures throughout a customer’s journey, that opportunity is non-existent online. Increasingly, a smooth seamless, easy and convenient process is critical in developing that trust. Online performance, done right, develops trust and loyalty and new customers.
RiskCALM4®, answers the digital transformation requirements, with accessibility, dynamic data access, communications, through a continuum solution.
Conclusion
A digital transformation plan must start out with a continuum solution, allowing for the technological changes occurring regularly, affording the online business modeling to be modified easily, over a period of time. A solution that is continuously changing, increment by increment, so that over a long period of time, can absorb a paradigm shift of the business, without disturbing the customer journey. Actually, this transformational solution is the gateway to your imagination and societal impact, while clearing the pathway for your customers. Technology is moving quickly, as is the competition, thought leaders understand that solutions are only a gateway, facilitating your ideas.
This white paper series continues with Part 3: Leveraging Data.
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