5 Myths About Digital Transformation in Banking

Digital transformation means something different within every industry or sector. Unfortunately, there’s no precise definition or perfect formula for success. For banking and financial institutions, digital transformation often refers to an overhaul of an enterprise-wide approach to digital technology and customer experience (CX). Although some view it as a major obstacle, it should be seen as an exciting opportunity for organizations looking to step up their CX game.

Digital transformation is nothing new

While it sounds super trendy and sophisticated, digital transformation has been happening for decades. Think about the first personal computers. Or the introduction to the Internet and shift from landlines to smartphones. That all constituted digital transformation, too. These evolutions drove enterprises to operate more efficiently, improve connections and gain quicker access to information. It’s no different today; we’re just looking at a set of new platforms and technologies. 

For a financial institution to succeed, it must operate quickly and efficiently, offer innovative features and services, and deliver great experiences. The pandemic only exacerbated these critical and time-sensitive goals. Faced with threats of economic uncertainty and loss of market share, many companies dove into digital transformation initiatives during and after 2020. However, some business leaders struggled with the pace of change, causing frustration and additional challenges.

Some myths also have impacted the digital transformation narrative, causing executives to wonder if evolution is necessary at all. At O’Neil, we think some of these myths – or misguided claims – negatively impact digital transformation decision-making and strategies. Whether you’re in the midst of a digital shift or evaluating a new solution, here are some prevalent myths to be aware of – and the real truth behind them.  

1. Digital transformation is all about technology.

Yes, digital transformation involves digital platforms and tools that revolutionize the way businesses operate. But you can’t solely think about it as a product or service to be purchased. Thinking about it this way commoditizes your overall approach.

Instead, consider the people and experiences your organization aims to influence. When your objectives revolve around these two important areas, your digital transformation yields greater impact.

2. IT departments “own” digital transformation.

On the contrary, the most successful digital transformation initiatives involve cross-functional teams – from sales and customer services to marketing and IT. Yes, IT may lead the charge when it comes time to implement new platforms. However, the strategy and workload need to be owned by various departments in order to be successful.

Additionally, digital transformation may require the addition of new team members, creating exciting job opportunities for internal or external prospects. Many financial companies wind up hiring integration specialists, data analysts, CRM managers, etc. to help drive programs forward and train team members on best practices.

3. Digital technology destroys in-person interaction.

Many executives worry that digital products and services will diminish in-person service and consultation opportunities.

Simply put, this isn’t true. While digital solutions foster alternative ways of creating and managing customer communications, it doesn’t mean they eradicate personalized attention. In fact, they position your team to deliver fast, efficient, and tailored services and advice at any time and from anywhere. Based on your customer’s communication preferences, you can answer questions or resolve issues more quickly than before, which will generate increased retention and loyalty. Ultimately, they open the door for continued upselling and improved customer lifetime value – two things we all want to achieve, right?

4. Bigger is always better.

Actually, taking small leaps toward a big goal is our recommended approach. When you focus efforts on one milestone – or initiative – at a time, you can make significant progress without exerting tons of money, effort, and time.

For instance, if customer communications management (CCM) is a major problem, consider a solution that can help you quickly understand their needs and address them in a quick, effective manner. For instance, O’Neil’s ONEsuite platform can do both at the same time. Not only does it deliver rich data insights, but it provides tools for the fast development and deployment of customer communications tailored to user preferences.

While you may need to remedy digital technology for other areas of the business in the future, you can bite off a major chunk with an all-in-one comprehensive CCM and CX tool.

5. Digital platforms don’t comply with strict compliance.

Nope – this is totally wrong. Not only does O’Neil follow financial compliance regulations and standards, but the ONEsuite platform also works within your data, privacy, and security rules. Its tools are also customizable to your brand identity and communications standards.

Also, users only interact with YOUR digital channels, website, or apps without reference to ONEsuite or its internal features. Ultimately, your organization has complete control over what your audiences see, read, and hear.

In conclusion
Don’t let myths or misguided information halt your digital transformation efforts. With over 50 years of financial expertise and 350 major institutional clients across the globe, you can trust that we have you covered.

If you have additional questions or would like to preview the power of ONEsuite yourself, contact our team to set up a free CCM/CX consultation.