A winning bank operations vision anchors on simplification, both on the inside and outside, and enables banks to both meet customers’ expectations for experiences that are as simple as possible and to work smarter—doing more with less and focusing on the right work at the right place with the best economics.
However, many executives are hesitant to start their bank’s transformation. Anxiety over “doing the wrong things” or pressure from internal and external drivers are top contributors to the sluggish pace of digital transformation in banking operations.
Nearly 80% of bank operations leaders say their organization’s existence could be threatened if they don’t update technology to be more flexible and capable of supporting rapid innovation.
– Accenture North America Banking Operations Survey 2018
Executive teams are open to radical change and willing to invest—by 2020, up to 40 percent of their banks’ spending on digital transformation will be in operations—but many need help starting their journey. Banks can start simplifying their core banking operations by taking these steps forward.
1. Understand where you’re starting from
First, be sure to understand your customers, business model and operations, market, segment, product and channel—both from where you are and where you want to be.
2. Narrow down your technology choices
Choose strategically, work with vendor partners and unlock the benefits of the cloud to decide on the best choice of technology amongst an abundance of available innovation.
3. Shift workloads off core legacy systems
Leverage tactics such as digital decoupling to shift workloads off the legacy systems that inhibit true digital banking and personalized service.
4. Invest in intelligent automation
Augment the workforce with artificial intelligence to jumpstart the journey to digital operations.
It’s not all or nothing
It’s understandable that banking operations leaders are hesitant to start their bank’s transformation to digital, seeing before them the mountain of wholesale change. However, the journey is a marathon that you can accomplish in short sprints, like outlining a set of areas to start with. It’s not an all-or-nothing proposition.