Produced by:
María Florencia Bo - Director of Consulting Services for Financial Entities and Insurance – BDO in Argentina
The Digital Gap service consists of analyzing the level of digital transformation that entities have. This is, in general terms, a study between the current situation and where it should go, supported by the creation of a roadmap to achieve these goals.
The proposed path is based on four verticals: clients, processes, technology and culture. Among the benefits of its implementation, the definition of a methodology and a joint strategy for the entire organization, process efficiency, the selection of technological changes and commercial strategies that place the client at the center stand out.
Based on all this, the work carried out in different banking entities is presented, which was made up of valuable interviews with some of their key members and surveys aimed at understanding their level of digital transformation. Based on this information, an analysis was carried out that was used as a basis for planning digital strategies focused on achieving new objectives.
The results
The main points to highlight, mostly in entities that have not yet begun to incorporate innovation processes towards digital transformation, are:
Little communication, low level of collaboration and unfinished work between areas.
High manuality in terms of processes and in many cases, little integration with current systems.
Use of outdated technology, with few resources and without improvement strategies.
Little differentiated value propositions in relation to competitors.
Presence of a relationship with the client where the client is not at the center.
Lack of clear strategies focused on digital transformation.
Most organizations do not have clear and defined data governance.
There is very little use of data for analysis, improvement of products and services, increased profitability and customer satisfaction.
In this sense, regarding the roadmap presented for the improvements required by the organizations, some issues can be highlighted such as:
The need to automate internal processes that impact productivity and efficiency
The importance of generating traceability of customer information to personalize offers.
The development of digital services in order to improve the customer experience in the center.
The development of a culture of innovation to work on digital transformation processes, such as the use of agile methodologies.
Incorporate technologies that accompany organizations in the change of image and the processes necessary to reach customers with a differentiated value proposition.
For their part, in those entities that have made significant progress on the path towards digital transformation, various improvements can be distinguished, such as:
Use of core banking
Automation of repetitive tasks
use of electronic promissory notes
Incorporation of cloud computing
Implementation of a management information system.
In addition, it is possible to add other keys such as the use of digital platforms to access loans, the use of online banking and API technology, integration of different databases and implementation of digital platforms that balance the profile of the client with that of the partner and the financial product that best fits.
In this sense, the success of banks, during the digitalization process, is differentiated into two stages:
At the beginning, the leadership and initiative of a person who made the decision and positioned himself at the forefront of this path stands out.
Also distinguished is the existence of a technology department, the incorporation of human talent and the formation of multidisciplinary teams.
On the other hand, among the determinants that appeared during digitalization, we must highlight the constant training of talent within the banks and the hiring of external firms with high knowledge in these processes.
Also common is the presence of extensive adaptation and flexibility in terms of the design of an initial implementation, which has also included multidisciplinary work between areas.
For its part, among the difficulties in this process is resistance on the part of traditional personnel, the acquisition of skills and knowledge about digital transformation, the impossibility of hiring new people and the centralization of the market.
Looking ahead to the next ten years, the main expectations are placed on the reduction of resistance to change and the renunciation of inefficient processes. Central to this point is the improvement of the financial services offered to the client and the consolidation of digital platforms.
From these digital transformation processes