How to define the digital transformation of banks ?
The digital transformation of banks is characterized by several areas of intervention. These answer a main issue:
Adopt a User Centric approach: the competition of online banks has forced the big traditional banks to completely rethink the customer experience.
For this, a traditional bank must work in priority on:
- Process improvement. The major challenge for banks today is to meet the needs of instant and rapid customer. The simplification of the processes (Registration, processing of requests …) which passes most of the time by automation becomes essential.
- The evolution of the business model: the disruption of the market linked to the arrival of new players (fintechs …) and the decline in profitability of their core market forces banks to rethink their model to cope with this competition. They are now turning more to the services associated with their products.
- Organizational change: which means digital transformation, says organization of the company. For this, banks are increasingly implementing a system of digital governance with the main objective of acculturation of employees and innovation.
2 examples of digital transformation of banks
- Groupe BPCE: transformation through projects (https://www.groupebpce.fr)
Since the appointment of Yves Tyrode (former SNCF digital director) as Chief Digital Officer of Groupe BPCE, digital projects have taken an important place with an investment intention of 750 million € by 2020.
For this, the group wants to develop new tools that will allow customers to subscribe themselves to the proposed banking products and simplify any request for credit. The group estimates that 40% of its sales will be made 100% by digital by 2020.
- BNP Paribas: transformation through the evolution of the existing (https://mabanque.bnpparibas)
The BNP Paribas Group distinguishes two priorities for this digital transformation: IT and human resources. IT is one of the main problems since it is necessary to be able to go from an ultra hermetic structure to a mobile structure without losing in security level. Human resources are therefore solicited both for recruitment to initiate this transformation but also for acculturation to effectively support this change.
These banks carry out these actions with a specific objective: optimizing the customer journey.
Written by Alexandra