IBS Journal February 2016


happening around, it does create its own challenges in meeting the Gen-Y demands. Remember, over 50% of the world’s popu- lation is less than 30 years! And hence the need for building a


digitally aware organisation. This calls for a sustained, continuous learning environ- ment across the organisation.


4. Institutionalising the digital operating model Just as much as how critical it is to have a customer-centric model, it is equally imper- ative that the operating framework built around it also graduates to a higher digital plane, for the journey to be sustained. For instance, leveraging customer data is not only about building campaigns with advanced predictive analytics but is also about creating the right customer seg- ments, building more appropriate product offerings, and delivering them seamlessly. Adapting digital operating model


cuts across the bank – right from the sales engine adopting data driven sales auto- mation, all the way to having outsourced fulfilment services leveraging cloud technology. While technology does serve to the


backbone, the real digital banking propo- sition is in the ability to harness its value in identifying customer needs better, creating and delivering the new age product and service offerings, and in enhancing the end-to-end experience, both inside and outside the bank. Creating the new paradigm of a digital bank also comes with its share of risks and


challenges. The need for increased cyber security


and internal fraud prevention systems goes hand-in-hand with greater proliferation of digital technology – one must recognise that the information systems are not only accessed by the bank employees, but also by customers and partners across multiple platforms. And of course the other word of


caution: ‘digital’ is not a destination, but a journey in itself. This is not a one-time pro- ject, but a physical, cultural and organisa- tional transformation, and an ongoing one at that. Getting the digital technology in place and creating the right infrastructure only makes on digital ready, and there can never be a point of final arrival. Changing customer needs necessitates


transformation in banking models, but then again, those changes result in a new set of demands by the customer too… after all, what came first, the chicken or the egg?!


About the author V Ramkumar is a Partner at Cedar Management Consulting International LLC. Ram has over 20 years of strategic and technology transformation experience, and is responsible for over 40 large technology transformation programmes. He can be reached at v.ramkumar@cedar-consulting.com


© IBS Intelligence 2016


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analysis: digital banking


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