IBS Journal May 2018
41
Digital leaders typically implement technology and solution architectures that are flexible and agile
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How is Oracle shaping the bank’s digital strategies – and what were its recommendations for success? Kamat says: “Oracle has a long history of partnering with hundreds of banks of all sizes across multiple geographies. Apart from the comprehensive portfolio of offerings that we have available to help any bank anywhere become a digital leader, we recommend three broad areas that banks must focus on for success in a digital and connected world.”
1. Data and insights. “Digital and data go hand in hand. Banks are uniquely rich in data full of context – both structured and unstructured – and this is distinct from consumer data alone. Digital leaders are able to view and leverage this data as an asset, monetise the data securely and drastically improve insights and critical business decision making. Additionally, they are increasingly leveraging advanced technologies like artificial intelligence and machine learning to uncover unseen and untapped patterns of human, operational and system activities which deliver significant benefits and help to establish significant competitive advantages.”
Kamat says digital leaders are also masters at managing and leveraging data and analytics to build actionable insights, make better decisions and establish competitive advantages.
“Digital leaders also typically have agile and flexible technology architectures and solutions that help them adapt faster and efficiently to market and business changes and opportunities,” he says. “A case in point is Lien Viet Post Bank, one of Vietnam’s top 10 private banks that invested in an agile core architecture and solution that enabled it to quickly and efficiently roll out next-generation banking services to more than 10,000 post offices in Vietnam. It’s an example of agility, innovation and speed driving growth – at a remarkable scale and efficiency.”
Kamat believes that the new partnerships and a ‘we’re all in this together’ attitude is altogether the correct one to use. “Additionally, digital leaders also increasingly participate in mutually beneficial partnerships and collaborations, which help them leverage inherent strengths, effectively overcome weaknesses and drive competitive advantages,” he says. “For example, Yes Bank in India has launched several APIs, which it offers commercially to fintechs, startups and enterprises. By opening up its data and services, Yes Bank has created new revenue streams and offers innovation and value to partners and customers.”
2. Agility and flexibility. “Digital leaders have agility and flexibility interwoven into their digital transformation. They typically implement technology and solution architectures that are flexible and agile. They leverage plug-and-play platforms and APIs to deliver effective, efficient and consistent experiences at speed and scale to both customers and employees. Additionally, apart from technology and solutions, digital leaders also adopt agility and flexibility into their organisational culture where business and technology planning and execution are agile and iterative with much faster decision making and time to market.”
3. Collaboration. “Digital disruption is entering a phase of connected ecosystems where multiple firms such as fintechs, banks and other digital firms can share data and build innovative services to bring unprecedented value to the customer. And digital leaders are increasingly participating in these ecosystems through collaborations with partner firms in mutually beneficial relationships. They are able to leverage their more comprehensive service portfolios, deep customer relationships and data in return for access to the latest technologies. They also gain access to much larger networks and customer touch points that span different value chains where they can offer relevant financial services and scale their business efficiently. In fact, McKinsey in a recent report states banks that successfully orchestrate a basic ecosystem strategy could raise their ROE to about 9-10%.”
Are the CEOs of banks in tune with the digital agendas of their tech staff? He says: “Based on our experience, the most successful digital transformations are those where the responsibility of driving the transformation agendas is a strong and collective focus from the entire
www.ibsintelligence.com 41
Chet Kamat
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