IBS Journal March 2018
35
DIGITAL VISION & STRATEGY
items to a credit card without having to pay at the retail checkout, we are just not talking about convenience, but an altogether new customer experience that the bank (Barclays, in this case) is looking to offer.
It’s not just about digitising the customer touchpoints and driving coherence with omnichannel banking, but about everything to do with banking. It is about getting all channels, data, technology, and operations to converge on driving a better customer experience (CX). Industry estimates peg a 2-3% growth in revenues for every increase in the customer satisfaction decile. CX is a function of ease, speed, transparency and above all, the ‘wow’. And that is where the digital bank can score, as evidenced by a higher NPS with digital first banks. Value perception driven customer experience is also a key factor here, and it pays to invest in building an image, although it is critical that the delivery framework lives up to the claim.
2. Is the bank’s operating model redesigned to suit the digital era ?
From being product centric to process and customer centric, there have been multiple theories that define the central theme of every operating model. However, what would be critical for thriving in a digital era is about weaving technology and a digital thought process around everything.
More and more banks adopting their process framework in accordance to “digital customer journey maps” is an evidence to this. Product design and development, driving new-age innovation in services, mainstream customer engagement and everything to do with back-end process will be re-oriented to fit with the digital agenda. It’s no longer about anywhere, anytime, but also about any-device, and therein lies the real essence of the transformation.
digital end-state is likely to emerge in the next few years
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If Social, Mobile, Analytics and Cloud (SMAC) does not constitute as primary vocabulary of the strategic roadmap of a bank, chances are that digital is not at the centre of gravity, and the bank sees this as another initiative. And if digital is just another initiative in the long-list of projects run by the bank, or if it is another business line for the bank, then chances are that the operating model they are currently delivered in is unlikely to last very long. If 80% of urban millennials already believe digital banking is the primary way to a bank, then the default operating model – the design for the end-game – will need to be digital in catering to that audience too.
So what happens to the branches? Well, just say that they exist to serve the purpose in the new scheme of things. As the customer profile transcends across generations over the next 10 years, and as smartphones grow into being a one-stop-do-all device, and branches become more flagship promoting digital experiences embedded in them, a new paradigm of a digital end-state is likely to emerge in the next few years. JP Morgan’s focus on building self-service kiosks and card issuing machines in branches, or Wells Fargo building video call technology for customers to speak with its personal bankers are examples of what branch banking will become in the days to come.
3. Have we got a future-ready digital organisation framework?
It may not just be enough to do a lip-service on having an agile organisation. A true future-ready digital organisation framework
A new paradigm of a
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