4 charts

Why digital transformation efforts are so fragmented

  • Only 3 percent of banks claim they have created continuity across all of your customer touchpoints.
  • 46 percent cite departmental silos as an obstacle to a continuous customer lifecycle.
close

Email a Friend

Why digital transformation efforts are so fragmented
Digital transformation is one of banking's top priorities. Product based processes, which might have been necessary a couple of decades ago, are severely damaging the customer experience and banks' profitability. Technology’s ability to break data silos and service the customer throughout his lifecycle offers banks opportunities to increase stickiness. Though most banks have embarked on their digital transformation journey, only 4 percent reported that they have completed it, according to a new report by enterprise software company LifeRay. screenshot-www-liferay-com-2016-11-24-13-02-37 When asked about the main challenges to digital transformation, respondents cited a wide array of issues, indicative, perhaps, of the lack of comprehensive vision and goals for the process as well as of the specific problems it intends to solve. screenshot-www-liferay-com-2016-11-24-13-10-31   To be fair, this is a hard problem to solve that needs coordination between many people, IT systems and decision makers. Fragmentation is the nature of the old product-based silos and procedures. It is this legacy that is preventing banks from truly creating a customer centric culture. When asked for the number one barrier to addressing the full customer lifecycle, a whopping 46 percent answered that different business units own different parts of  it. screenshot-www-liferay-com-2016-11-24-13-32-35 With different departments owning various parts of the lifecycle, and with the very human tendency to not let go of organizational power and responsibility, how can management move the effort forward? The path chosen by most FIs was the easy one: dealing with what they can, without stepping on too many toes. 53 percent of the survey respondents said they just deal with parts of the customer lifecycle right now. screenshot-www-liferay-com-2016-11-24-13-50-50 Only 3 percent of respondents claimed they have created continuity across all customer touch points. 55 percent are in the midst of coordination and 36 are just starting to look at solutions. As the adag, popularly attributed to Albert Einstein, goes: you can't solve a problem with the same kind of thinking used to create it. Overcoming organizational silos will require banks to truly commit to the customer as the goal of their digital transformation.

0 comments on “Why digital transformation efforts are so fragmented”

4 charts

The fintech funding downturn is a correction, not a retreat

  • Coming down from the highs of 2021, VC fintech funding slowed for four consecutive quarters.
  • Nevertheless, CB Insights lead fintech analyst Anisha Kothapa insists that VCs are not retreating from the industry.
Lindi Miti | February 24, 2023
4 charts, The Customer Effect

Most consumers can’t live without their mobile banking app, study shows

  • Banking apps are becoming central to how consumers manage their money.
  • About 87% of consumers are using their banking app at least once a month, which is 2% more than last year.
Rabab Ahsan | February 06, 2023
4 charts, Blockchain and Crypto

4 charts on the year of the ‘crypto credit crisis’

  • The collapse of multiple centralized exchanges has plunged the crypto industry into what CoinDesk calls a 'crypto credit crisis', with circumstances still unfolding today.
  • For a broad perspective on the market, we discuss the macro returns, Bitcoin and Ethereum's performance, and the state of capital raised for crypto funding over the past year.
Lindi Miti | January 30, 2023
4 charts

Where challenger banks are headed, in 4 charts

  • Challenger banks have definitely managed to make a dent in consumers’ habits.
  • But with the current downturn in funding, what lies ahead for these digital banks?
Rivka Abramson | December 27, 2022
4 charts

The state of transparency and inclusion in private markets, in 4 charts

  • If Musk privatizing Twitter and Kim Kardashian setting up a private equity firm are indications of things to come, then transparency and inclusion in private markets should be in the spotlight.
  • We look at Carta's Annual Equity Report 2022, which gives a demographic analysis of ownership in US private markets. Here are our takeaways, in four charts.
Lindi Miti | December 02, 2022
More Articles