The Financial Brand Insights - Fall 2021

” Lack of digital maturity now threatens the survival of many banks and credit unions, and more than half of those with assets under $10 billion say they haven’t made substantial progress toward their goals. - Digital Banking Report

The Complex Journey to Digital Transformation

Many financial institutions are still working with siloed legacy systems that lack data functionality and can’t support modern data needs, digital channels, or marketing automation. As a result, financial institutions aren’t always using their consumer data like they need to if they’re to meet their consumers growing expectations. 80% of COOs believe their organization’s existence is threatened if they don’t update their technology to support rapid innovation, according to Accenture . While these technology upgrades are now mandatory, they’re not always so simple. It can take three to five years to complete a core conversion, and on top of that many financial institutions are already locked into contracts that can span several years. Even when the path is visible, overhauling technology can impact internal resources and operations. As a result, many banks and credit unions still have yet to take the first steps to address their underlying infrastructure requirements. Given the added pressures of changing consumer behaviors and the impact of the pandemic, alternative approaches that make this long and complex process more agile are emerging and gaining popularity.

Howthe Right Banking Vendor Strategy Can Speed Digital Transformation

Approach One: Incremental Financial institutions typically have four major milestones in their digital transformation journey: 1. Upgrading legacy systems 2. Updating the digital channels 3. Developing business intelligence and data analytics 4. Marketing automation One approach to tackling these requirements is to go incrementally. Selecting a new core system and making the conversions is usually the first milestone (and the most time intensive process that can take multiple years). With a core system in place, financial institutions can then establish their digital channels (which can take another year to go live). After that, they can add in a layer to query and report so the institution can extract data and use it in a meaningful way. Typically the last of the four tech integrations involves choosing a marketing platform that can be integrated with the infrastructure that’s been put in place. Some financial institutions find the incremental approach less intimidating because it’s easier to get started. It also makes it possible to select

Laying the Groundwork: 3 Approaches to Digital Transformation

both profits and market share while developing relevant, one-to-one digital relationships with consumers. While these capabilities were once nice to have, they’re now a necessary component just to survive. According to the Digital Banking Report , the lack of digital maturity now threatens the survival of many banks and credit unions, and more than half of those with assets under $10 billion say they haven’t made substantial progress toward their goals.

By Felipe Gil CEO of Prisma Campaigns

Some say that if you have to do something painful, it’s better to “rip off the Band-aid” and overhaul everything at once. Others will argue that it’s better to break it down in smaller chunks. What this looks like for each institution is different. When considering a digital transformation, here are three schools of thought (one of which we feel is superior).

Banks and credit unions are more eager than ever to leverage the latest technologies to boost efficiencies, improve the customer experience and enhance their brand. From instant account opening and marketing automation, digital capabilities enable banking providers to capture

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THE FINANCIAL BRAND INSIGHTS FALL 2021

THE FINANCIAL BRAND INSIGHTS FALL 2021

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