The digital transformation in banking defines a new business model focused on the customer and its experience as a user.
In recent months, you will have had the opportunity to read and listen to dozens of approaches and reflections on the digital transformation of companies in general and in the banking sector in particular.
If we go to the dictionary definitions of the RAE, we will not get a clear answer, since they adjective everything that is done or transmitted by digital means. Neither will we have the answer we seek if we contrast the term with the analogical concept, which is explained to everything that is done or transmitted by analogical means.
After the highest and most conceptual discourse, the truth is that the scope of this new mantra acquires as many interpretations and real content as exist models.
Thus, a bank is considered digital when it has a mobile channel to interact with its customers, another when it has some product that can be hired without physical presence, another when it automates much of its operations in the offices, another when simply modernizing them, another when allowed to pay with your mobile phone, etc.
Three components can help us bring order: the Customer, data, and Operation (CDO). The digital transformation in banking defines a new business model focused on the customer and his experience as a user through which to attract new client segments.
At this point, it is necessary to listen to them and understand their needs in order to configure business solutions, in which usability and simplicity is a primordial factor. The client of the 21st century who dominates social networks, is an informed customer, knows what he wants and where to get it, so it requires a satisfactory experience based on transparency, closeness, trust, and immediacy.
Second, through the transformation of the data, banks obtain relevant information that allows the customer to know not only financial information, but also about your lifestyle, your tastes, and needs.
Thirdly, the agile and efficient operation of systems and processes will provide banks with an adequate response to the new times with an excellent level of quality.
There is a risk of distorting each of these components. In the digital model, the hiring of products without physical presence is handled, and non-financial products are marketed. But it operates in the omnichannel paradigm, and here what really matters for a client is not so much multichannel, but the experience to operate on each channel.
It is also important to make responsible use of the valuable historical and contextual information of the people – always with the consent of the clients, providing real perceived value after analysis, and of course respecting the limits of personal intrusion. In fact, this difficult balance is one of the significant challenges that the new science, called Data Science.
It is also important to knock down old traditional barriers when trying to preserve the complete control of the customer, and there is already talk of cooperation between different companies, breaking the traditional business value chain in micro services.
But it is not only a question of creating more or less perfect or disruptive solutions, but also of providing the bank with value if we want the new business digital framework to be economically sustainable.
Indeed, the objective is not to accumulate mountains of information without knowing what to do with it, but to obtain data and process them considering the 4V that characterize the Big Data: volume, truth, speed, and variety, and distinguish it from other practices more implanted, such as Business Intelligence (BI).
The analysis of the interactions with Big Data allows banks to predict customer behavior, providing more timely answers that should lead to a more personalized and precise service.