I also highlighted that all of them approach digitalization as much more than just a cost-cutting exercise and realize that they have to tackle digitalization in the way that best reflects their organization’s situation and goals.
As Gartner analyst Stessa Cohen made clear in her recent report, CIO: How to Choose the Right Approach to Digital Banking, “Bank CIOs seeking to acquire a new digital banking solution must address a fundamental decision between two often conflicting priorities for the bank: IT cost optimization and business transformation.” If your bank’s main driver is cost optimization, then digital banking multichannel solutions are the technology to search for. If the focus is on digital transformation, she says you should go for digital banking platforms.
Priority: Cost Optimization
While Cohen writes in this report that “…digital banking multichannel solutions also enable the CIO and the bank to start on the digital journey,” in the 2017 report, Hype Cycle for Digital Banking Transformation, she states that “digital banking multichannel integration solutions deal with banks' real, but short term [sic] requirements and are not aligned to the long term fundamental transformation needs of the bank.
Priority: True Transformation
She continues in the 2017 report by stating that “digital banking platform technology can replace separate mobile and online banking solutions enterprisewide [sic], but they are used to [sic] for more transformational purposes. Banks pursuing digital transformation strategies can use digital banking platforms to integrate digital and physical channels and devices and deliver digital services to all these channels and devices, whether customer- or bank-owned.”
Having worked with the financial services industry now for over 15 years, Appway has been closely involved in digital transformation initiatives. During this time, many new channels—like mobile or more recently chatbots—have appeared and have been added on top of the already existing channels.
Many of the initiatives for these new channels were managed independently from the already existing channels. In several instances, banks built whole new teams to take care of the new channels separately from the already existing channels. This led to innovation silos where channels were dealt with as if they were their own little islands, which obviously created not only disconnected customer journeys but also internal alignment issues and high maintenance costs.
Customer journeys often involve multiple stakeholders—but also systems and services (even third-party services). This is why it’s all the more important that these are all seamlessly connected, that the customer journey is effortlessly orchestrated, and that the processes are streamlined end to end. There’s nothing more important than forming a coherent experience for banking customers.
Choosing the Best Candidate
Today’s digital banking platforms should enable straight-through processing—connecting people, systems, and services—so that banks can offer the cohesive customer journeys that their clients expect. At Appway, we know this is only possible by covering all channels that are relevant in the context of a customer journey. On top of this, digital banking platforms should also enable banks to launch new products and services quickly and create new revenue streams across the channel spectrum, even planning ahead for channels that will undoubtedly appear in the future.