The Need for Revamped CIO in Digital Banking

The Need for Revamped CIO in Digital Banking

By CFO Tech Outlook | Wednesday, October 23, 2019

Tomorrow's CIO in the banking industry will have to develop new skills and undertake new responsibilities to promote internal cooperation and foster a start-up community.

FREMONT, CA: Electronic metamorphosis is sweeping through industries, creating innovative products and services, unique restraints, and different ways of presenting a need for more centered administrative attention and resources. As businesses create new business models and generate technologically advanced companies through digital transformation, they are doing more than covering new territory. They also carve out new skills into established agencies.

Retail banks and credit unions are reconsidering and evolving the position of Chief Information Officer (CIO) to suit a changing landscape and adapt to new entrants. In addition to enhancing the digital capabilities of the front office and back office, the emphasis is progressively on optimizing the consumer experience throughout the entire customer journey.

The more digitally perceptive customers have pushed banks to rely on optimized custom services powered by intuition. CIOs need to consider consumer expectations raised by non-financial companies beyond simple system digitization. The present-day digital consumer anticipates a coherent touchpoint and channel experience. Although online finance has modified essential transactional relationships, branch banking is still of strategic importance. Consequently, as part of the more comprehensive digital strategy, CIOs should consider both platforms and consumer's features and benefits.

CIOs have noted an increasing need for cooperation with Chief Marketing Officers (CMO), exchanging feedback to strengthen multichannel interactions, project management, recognizing needs, and personalizing. As per Cognizant, CIOs see the need to continually re-make and actively up-skill themselves and their companies in response to these new opportunities and an extended run of administration.

CIO as a Collaborator

As the importance of digital technology grows, so does the CIO's organizational obligations. Banking CIOs agree that the key elements for an effective digital transition are management, capability holes are filled, a specific vision is established, and advantages are recognized. This needs experience that goes outside the conventional CIO's capability.

Researchers have seen a need for CIOs to extend the scale and scope of their partnerships within their organizations to compete in the modern digital banking framework. Bonding with senior business and marketing managers, as well as with digital strategy experts, organizational design, technology planning, is helping CIOs navigate their stand in the updated ecosystems. Additionally, CIOs must also actively participate in the shortlisting and recruitment of third-party collaborators as well as in the design of suitable performance requirements and assessment strategies.

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CIO as an Agent of Change

Although the CIO must handle legacy structures, they must also be the voice for transformation within the company, consciously supporting and fostering a start-up mindset. They must be at the cutting edge of technology inside the enterprise, incorporating participants in the potential and opportunity of incorporating emerging tools and techniques into new and current operations.

CIOs will serve as visionaries eager to reinvent traditional banking strategies and invest in new financial technology to stake their credibility. It will be foreign to most financial CIOs to carry the 'transfer officer' badge. But the CIO has to fulfill other roles and responsibilities to be effective in the digitized marketplace.

However, there are still major barriers to success. Approximately 70 percent of respondents described corporate culture as the key challenge, according to industry professionals, and 66 percent reported a lack of engagement from the organization's top levels.

Although CIOs may be reasonably well equipped to meet the needs of today, significant challenges continue to be on the horizon needing increased skill sets and skills. Integrating legacy and modern digital technologies, skills and standards may be the most critical challenge. Many of these requirements can be addressed by strengthening communication within the organization with other members. Collecting, assessing, and delivering consumer intelligence to facilitate the customization of services and promotions similar to what has been done in other sectors will be essential to the need to enhance the online customer experience. This catalog and assessment of perspectives will need to be carried out through classical internal silos and externally through distribution and communication channels. The secret will be to accomplish this from the consumer point of view smoothly.

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