The final instalment in our blog series about digital transformation in banking, this week we’re focusing on going digitally native. Having already unpacked a “front end only” approach and a “wrap and digitise” strategy, we’ve showcased how banks can make cosmetics fixes without changing up any of the tech infrastructure. We’ve also unpacked how banks can take things a step further by upgrading different components as their needs evolve and the market develops.
If we think of these two strategies in an incremental fashion – the first is the simplest and easiest approach and the second is slightly more complex. This final path takes digital transformation to the most advanced level.
Going digitally native means creating a fully digital customer interface, supported by a fully digital and advanced back end.
Learn more about the digitally native approach, below.
- Banks that go digital native choose to go all in.
- They create a fully digital customer interface and back end.
- The approach delivers significant cost savings, mainly because of the benefits of cloud technology.
- Going digitally native makes it possible to adapt to change quickly.
- It allows banks to test and iterate, rather than commit and hope things work out.
- Banks that typically choose this path, start out offering just a few products.
- Having a digital core and open architecture also allows for easier partnering with third parties, which expands the range of products and services a bank can offer.
From a customer perspective, a digitally native bank offers:
- Seamless experiences based on their needs.
- The option to use the channel of their choice to communicate with their bank.
- Simplified and more convenient banking processes, which takes the queues and hassle out of opening accounts or signing up for offerings, for example.
While fully digital banks may take some time to overtake their more established, and traditional, counterparts, the agile design of digital banks helps them stay ahead of their competitors and adapt quickly as the market changes.
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