21 July 2016
The Journey Towards a Digital Bank – Five Major Stages to Successful Banking Digitalisation
By Alexander Makeyenkov
Alexander Makeyenkov, SVP of Capital Markets at DataArt, contributes an article to Finance Digest, where he breaks down the banking digitalization process into its essential stages. These include: establishing supportive culture and processes, prototyping, developing business applications, advancing to digital platforms and transitioning to the digital model.
Success in the digital world requires more than rethinking technology; it requires reshaping culture, processes and organisational structures around customer experience... then focus on forming autonomous, self-managing, multi-skilled and multi-functional teams.
Prototyping is the ‘test and learn’ stage at the heart of R&D, where the new ideas for digital services go through rapid iterations of visual prototypes before they result in a new business application.
A new business application is the combination of a product offering, an operational model that supports it and a client facing app, fully integrated into the business’s processes and compliant with internal policies.
By providing a shared infrastructure, digital platforms enable rapid product prototyping and reduce time to market of business applications, while providing immense gains in efficiency and reduction in costs ... The platform becomes the digital DNA of the company internalised by its digital products and servicing existing clients.
The preparation and timing of the transition is critical and is an exercise of finding the right trade-off between gaining new business and letting go of the old one.