Digital Banking: A New Era, or Banking On The Rocks?
Reports from the digital front lines are grim, and there will be more losers than winners
We are undoubtedly embarking on a new era of digital banking, but the problem for incumbents is that there will likely be far more losers than winners.
Deloitte suggests six digital imperatives to be a digital banking winner. If only it were so easy! Just six?
While Deloitte isn’t entirely wrong, I’m not an optimist that most banks can become winners because of of the dire reports from the front lines of digital banking.
One recent report on digital banking (my article here) found that 57% of banks cannot build an “open API” that meets expectations, and 58% have difficulty with the cloud.
Meanwhile, another report on bank digital capabilities (my article here) shows that only 19% of banks qualify for the top tier of four in a ranking of digital banking maturity, demonstrating an ever-increasing digital divide between winners and losers.
The grim reality is that over half of banks fail at basic digital skills, and the digital divide between winners and losers is growing quickly.
With market trends like this, Deloitte would do well to advise banks on how to lose in digital banking and suggest six elegant exit strategies!
Deloitte's imperatives aren’t wrong, and it is a solid read, but the grim reality is that most banks will be cast upon the rocks.
👉The Six Strategic Imperatives for Digital Banks
If only it were this easy!
1. Customer strategy and segmentation
Focusing on target segment needs to drive trust and inclusion, while keeping an eye on mass market appeal
2. Brand, experience, and proposition
Building a personalized proposition that is digitized for the right moments
3. Business model
Making the right strategic decisions to remain economically viable, and not just desirable
4. Operating model and organization design
Enabling a nimble organization aligned to delivering and scaling the digital proposition
5. Risk and compliance strategy
Strategizing for the breadth of regulatory transformation triggers
6. Technology, infrastructure, and platforms
Prioritizing a technology stack to drive differentiated propositions and improved performance, while balancing cost and scalability.
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