How Financial Institutions Can Achieve Digital Maturity

by | Nov 26, 2020

Pandemic Propels Financial Institutions Towards Digital Maturity

The financial services industry has long been ripe for digital disruption with many organizations already fast-tracking their digital transformation efforts – driven by consumer expectations, an evolving competitive landscape, regulations and technological advancements.

However, according to a recent report by Deloitte, despite consumer willingness to adopt and many financial institutions’ willingness to invest, “digital has remained inconsistent across players, markets and continents.”

But, COVID-19 has been a catalyst for unprecedented, digital change. It has forced people out of their comfort zones where physical interactions were the norm, into a contactless world, where digital interactions are the new normal.

It is no surprise that bank branch visits reduced drastically in 2020, as customers opted for digital banking as a safer, more efficient option.

The pandemic also accelerated the rate of digital transformation in banking.

The bank’s sales jumped from 25% digital to nearly 75% digital during COVID-19, condensing 10 year’s worth of changes into two months”

It’s evident that financial institutions need to mature digitally to ensure agility and resiliency in the new normal and to ensure survival in the highly unpredictable path ahead.

Below is an uncertainty index, provided by the International Monetary Fund and Stanford University. While it is clear that the pandemic caused a spike, it shows that overall uncertainty has been increasing steadily over time:

Digital maturity is key to ensuring the future success of financial institutions

Now that the dust from the COVID-19 storm has started to settle, getting a measure of the company’s current digital maturity is key to defining a digital transformation strategy for 2021.

How financial institutions can achieve digital maturity:

  • Use a METHOD to benchmark digital maturity
  • Select the right TECHNOLOGY
  • Hire and nurture the right PEOPLE

METHOD: Digital Maturity Framework

A digital maturity framework provides a picture of how your organization compares in an increasingly competitive, digitally savvy industry. Using a framework like the one below (which has customized elements that fit your sector) helps to pinpoint where your organization sits and where it aspires to be.

The outcome of working with this framework is a digital transformation strategy, a plan for execution, and a map of the technologies required to support the strategic goals. GET IN TOUCH

TECHNOLOGY: agile strategy with agile execution

To compete, banks and credit unions need a foundation in systems and processes that enable agile responses to the changing needs of customers and members.

What are the building blocks of an agile organization?

  • A best of breed tech stack that can fill major gaps and support each of the key components of ‘great customer experience’
  • A modern architecture that is secure, compliant and scalable
  • A focus on gathering, analyzing, and applying data to personalize experiences
  • A smart way to approach agility is to outsource as much complexity as possible so that the bank can focus on customers instead of technology issues.

PEOPLE: align the entire organization with your CX goals

One of the most important goals for 2021 must be to change the mindset of the entire organization – right from the CEO and senior leadership down. Inspire employees by demonstrating their impact on CX and communities overall.

Remember to focus your full-time employees on their core competencies while reskilling them. Unfortunately, hiring and training the right people takes time and investment that you may not have in the current environment. This is another reason to leverage outsourcing – both for your CX technology implementation and for executive functions.

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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