Can Digital Transformation Revamp the Banking Sector?

Can Digital Transformation Revamp the Banking Sector?

By CFO Tech Outlook | Friday, July 10, 2020

Fintech is basking on the advantages of digital transformation to drive progress in banking and focus on the customer.

FREMONT, CA: As millennials are the largest generation in terms of both the makeup of the workforce and the weight of their consumer value, approximately half of the global workforce will be millennials - the expectations for how services like banking should function have changed dramatically. Coming of age in the digital era and entering adulthood alongside the dawn of the smartphone, this group has come to expect instant access to information and a slick digital experience. No one of any age enjoyed filling out paper forms and tedious queuing.

Similarly, as Generation Z is entering adulthood, a failure to meet these new digital demands comes at the peril of legacy organizations. Challenger banks have swiftly recognized and responded to this shift. Taking an experience-first approach, these innovators built apps that cut the busy-work out of banking. Emphasizing on easing the experience of everyday tasks - splitting a meal with friends, checking your balance, or counting up the bills for the month has led to skyrocketing the user growth and fundamental changes in the banking functions.

Top 10 Fintech Solution Companies - 2020Understanding the needs of this new generation and the unheard wishes of the customers of traditional banks that came before them, sounds simple. However, understanding those needs was the first step, responding to the needs the ability to adapt and align rapidly. Fintechs need to change the way the workplace functions in order to initiate a fundamental change in customer expectations.

Building an agile work environment has been the core to fintech’s ability to innovate. With over a huge customer base, banks rely on channel-based communication, rather than email, to connect central teams and coordinate its response to incidents such as outages. Moving quickly can mean hitting bumps in the road, but by coordinating rapidly through channels to respond to any issues in real-time, Monzo has been able to scale at a phenomenal rate while still offering the world-class customer experience has built its name upon.

Many Banks are replacing email, which works poorly and restricts each person’s view with transparent channels and developed from the bottom-up to offer a rich permanent, searchable record of knowledge. Organizations can coordinate and align more easily.

See Also: Top Digital Transformation Solution Companies

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