Navigating the new normal: Key considerations for banking leaders
Micah Group recently wrote an article for Great Lakes Banker, focused on the post-pandemic challenges facing banks in 2022.
Banks of all sizes have found themselves in the midst of a perfect storm. COVID-19 accelerated the shift from in-person to digital, while new breeds of competition disrupt the industry and customer expectations continue to intensify.
As banks rethink service models and adopt new technology to counter challengers, they are seeing mixed results. Going digital is not always the silver bullet. Software implementations seldom go as planned. Limitations with aging technology or staff knowledge can derail a well-planned effort.
But staying stagnant presents its own set of risks. For bank CEOs, it can be challenging to decipher exactly where, when and how digital investments will add value. What is clear is that banks must adopt a resilient, customer-centric digital strategy to compete in the future. As you progress through your digital transformation journey, keep the following principles in mind.
Manage Your Tech Stack Like a Portfolio
Every technology investment carries risk and opportunity, both independently and in relation to its counterparts. If mismanaged, technology inefficiencies and costs can pile up quickly. Taking a systematic, holistic view will help you build a strong foundation, yield greater returns and simplify scalability in the long run.
Start at the Top
“Be deliberate in choosing partners who will invest the time needed to derive the most ROI from your new tool. Finding both a technical and cultural fit is critical.”
Given the magnitude of what’s at stake, banks will benefit from appointing a leader, or team of leaders, solely accountable for digital transformation and related investments. While it requires expertise in legacy systems, new technology and the future landscape, the right leader is not necessarily your IT manager. This role demands a change agent with the organizational influence and business acumen needed to drive urgency and buy-in.
Employee Experience = Customer Experience
Northwestern University researchers found a direct link between employee satisfaction and customer satisfaction, and between customer satisfaction and improved financial performance. When it comes to technology, equipping your staff with modern tools and intelligent data can differentiate the value they deliver to customers. For example, speeding up manual tasks with automation and/or integration enables your staff to focus on customer relationships and higher-value priorities. Look at both back and front office improvements to remove friction for your team, particularly millennials and Gen Z employees who typically have higher technology expectations.
