Recipe for Becoming a Digital Bank

In a recent article, I wrote about becoming a Digital Enterprise; today, I expand on the concept as it relates to the Banking Sector.

What does it mean to be a Digital Bank?

A Digital Bank is a bank that has leveraged digital technologies, across all 4 Layers of their organization.

Although Digital Banks are made up of many different components, key ingredients need to include:

  • A single, trusted source of data with ease of access to the right data and intelligence for the right person at the right time.
  • Legacy systems that are fully integrated, and incorporated into modern rules, engines, decisioning systems, and artificial intelligence (AI) in order to make informed and intelligent decisions in real-time.
  • Automated processes and actions to provide personalized and straight-through customer experiences (CX) and interactions.
  • Integrated front-end systems (customer, employee and sales channels) into back end systems in real-time without any required human interaction.
  • Enabled sales, field, branch personnel with easy to use, intuitive systems that guide representatives through both the advisory and sales process; making every front-end employee as strong and capable as your best front end employee.
  • A full 360 degree view of customer data that can track and monitor the performance of customer, employee or application transactions, and provide smart insights. It should be enhanced with 3rd party data to intelligently position and promote products and service to clientele and prospects in real time; leveraging Interaction Management, Artificial Intelligence (AI) and Bots where appropriate.
  • Operations are componentized, modularized, and streamlined using rules engines, decisioning systems, and automation to provide straight-through, real-time experiences for employees, partners and clients.
  • A full understanding of customer value, potential value, and cost-to-serve using Activity-Based-Costing (ABC) to ensure right-sizing of service offering.
  • An understanding that the traditional ways of marketing and manufacturing banking products are dead…bespoke is the future. Banks need to provide bespoke products and solutions based on true value and cost to deliver of said configurable product / solution. While products are dead, product components live-on as modules to be assembled using product configuration engines to deliver bespoke solutions, in a cost-effective manner, to the masses.

K2 Digital has proven Approaches and Methodologies to help financial Institutions implement one, some, or all of the above mentioned ingredients for becoming a Digital Bank.

If you would like to learn more, please do not hesitate to contact me at ltepperman@k2digital.com.