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

4 charts on consumers’ increased demand for digital and personalized banking solutions

  • Demand for better digital capabilities and product personalization from banks increased as a result of the pandemic.
  • Here are four charts on how consumer demands from banks are likely to change this year.
Rivka Abramson | April 09, 2021
4 charts

Four charts on the lack of tech expertise in bank boardrooms

  • Many bank boardrooms still lack critical technology expertise.
  • Here are four charts on familiarity with tech in bank boardrooms today.
Rimal Farrukh | April 07, 2021
4 charts

4 charts on gender equity this International Women’s day

  • Gender diversity in financial services has made major progress, however women lag far behind when it comes to representation in leadership.
  • Here are four charts that explore the current state of women in leadership across financial institutions and fintechs.
Rimal Farrukh | March 08, 2021
4 charts

4 charts showing the financial industry’s lacking racial diversity across all levels

  • Financial institutions still have a long way to go before they reach balanced representation within their companies.
  • Here are four charts on financial companies’ lack of racial diversity, especially in managerial and C-suite roles.
Rivka Abramson | March 02, 2021
4 charts, Member Exclusive

4 charts on why banks need embedded finance to be relevant in the future

  • Banks have an opportunity to rethink their transformation strategies.
  • FIs can consider turning invisible by powering ecosystems instead of going direct to customers.
Zachary Miller | November 13, 2020
More Articles