“You cannot back up the truck and buy one”
These were the words declared by Capco’s Lane Martin to conclude our ‘Bank in a Box’ panel event on February 21st, 2019. The event brought together industry leaders to engage with peers and outline the resources, workstreams and complications associated with building and launching pre-packaged digital banking platforms.
Our expert panel included Susan Green, retired Executive Director at Ally Bank, Rabih Ramadi, Head of Financial Services at Unqork, Aaron Villarreal, Digital Architect and Head of DBX Labs and Lane Martin, a Partner at Capco. Each panelist opined on the frustrations digital-savvy customers experience with the banking sector, and in return, the issues financial institutions face in catering to specific customer needs.
The panel kicked off with an overview of the challenges that institutions face when adopting digital banking platforms. The panel emphasized the importance of a strong foundation. Indeed, foundational issues in banks typically include weak technology infrastructures and a lack of detailed internal processes. The first step to managing these challenges is by setting expectations through an inaugural capability strategy.
The banking industry is often resistant to change and herein lies the struggle. Building a new digital platform, removing legacy systems and sheer cost often make for a daunting proposition to involved stakeholders. Susan Green suggested that one way to prepare for potential detractors is to enter every conversation leading up to the change as the naysayer. You do this by making sure you ask numerous questions and generate the necessary, clear and concise outcomes for potential points of contention. Susan also noted that while some processes and technologies require change, many do not. Rabih Ramadi reaffirmed this approach stating that banks have limited technology budgets, so prioritization is key. Open communication about these decisions with the broader bank audience helps to foster full support.
Customer experience and UI/UX is another integral component of digital banking projects. Aaron Villarreal highlighted the importance of understanding customer needs and tailoring projects around their preferred standards. This approach increases the likelihood of a successful outcome. Customer experiences should be mapped as detailed and accurately as possible. Designers need to interpret the entire customer lifecycle and strategically pinpoint which areas are ripe for new, innovative features. A comprehensive risk strategy needs to align with the digital platform build and release to ensure full compliance to all regulatory statutes. A lack of imbedded controls and missed regulatory measures can completely derail the project.
Overall, these digital banking platforms provide customers with the innovative capabilities and features they seek from financial institutions. However, it is crucial that banks implementing these technologies fully understand all the components of a successful build and launch.
How We Can Help
Capco’s approach to digital transformation projects merges UI/UX design, web and mobile development, business analysis, and operational risk and readiness resources into a single team. We help clients understand their appetites and abilities for digital change by conducting a capability strategy and analyzing organizational models. Capco delivers digital banking platforms through an agile approach with best practice operational readiness procedures to ensure that clients are set up for success in their full transformational journey.