Do you know the best practices of digital transformation in financial services? If you are interested to know more about that, this article is a great help for you.
Digital Transformation in Financial Services: Best Practices
Here, we will discuss the best practices and common pitfalls of digital transformation (dx) in financial services.
It is a prerequisite to focus on the customer and build a customer-centric culture. If you are not focused on the customer, you can’t achieve any success. You should learn to listen to your customers and their needs. It will help you to understand their problems and the requirements for solving those problems.
Know the factors affecting employee performance
Dx without a customer-centric approach is just another technology or platform adoption. You can’t solve business problems using technology if you don’t understand them first. Dx requires a change in the way we apply technology and an understanding of what technology can and cannot do for our business.
Define the digital transformation roadmap
It is necessary to define the dx roadmap for your organization. It must include the vision, mission, goals, objectives, and digital transformation projects. Also, it is not only about technology; it is also about defining how technology will be used to support business goals. It is also important to identify the current state of the organization and define the target state after implementing dx projects.
There are some common misconceptions about digital technologies like the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), etc. They are not new technologies but they are used together in different ways. Digital technologies are just tools that help us to achieve business goals by using them in different ways. Our experience with any technology is defined by how we use it for achieving our business goals, not about the technology itself. For example, if we use IoT-based solutions for delivering real-time information for better decision making it is called digital transformation; otherwise, it is just another technology adoption. Most of the organizations who want to implement the dx approach think that they need to invest in new technologies like AI, ML, IoT, etc., but they forget that these are just tools that help us to solve our business problems.
Technology selection requires a deep understanding of the business need and the risk associated with this requirement. Also, technology selection can be based on multiple criteria including cost of implementation or usage of existing infrastructure or systems or anything else that makes sense to you internally as well as externally from your customers perspective also based on your industry requirements etc., but remember one thing you must have a clear understanding of the risk associated with every choice otherwise, you may face some challenges after implementation of technology.
Digital Transformation Projects
Now comes the time to make a dx project plan. It’s not an easy task because you should consider a lot of things before making this plan. Here are a few best practices that will help you to make a good digital transformation project plan:
Firstly, define success criteria for each project and identify the metrics that will help you to measure the success of those projects. Secondly, you should define the key stakeholders and their roles and responsibilities in the project. Thirdly, define the governance model for dx projects.