Biggest Barriers To Digital Transformation
The future is coming fast. In some cases, it can even seem like the future has already passed, and we’re in the midst of some type of post-future with the world going through changes more quickly than we can easily track.
Usually, overall change occurs because peoples’ personal needs change and develop slowly over time. Nowadays, much of this has come courtesy of the challenges surrounding the Covid-19 pandemic, but it’s also a natural companion to general advances in technology—particularly in computers and telecommunication.
In banking, it means that to stay competitive and relevant, banks must grow and develop to meet the needs and expectations of their customers.
That’s where the concept of digital transformation comes in.
A Look At Digital Transformation In Banking
As a process, digital transformation looks to improve and enhance a business or bank’s ability to bring together data, computing, and connectivity to better serve customers, optimize management, and control costs. This is not optional for banks who wish to remain in business as we continue to barrel through the 21st century. It’s a must.
Digital and mobile technology have significantly altered how people shop, pay bills, manage loans, and grow businesses. Banks can learn a lot about customers by seeing how they manage their finances online—primarily through their bank. Combining customer data with state-of-the-art analytics and real-time connectivity can give your bank a step up in creating more efficient operations and effective customer service and retention strategies.
Digital Transformation and Legacy Systems
For community banks and local credit unions to meet the needs of their current and future customers, it’s essential to update their existing legacy systems. Many financial institutions have successfully used legacy core systems such as FISERVE Premier, FIS Horizon, or Jack Henry & Associates Silverlake. The functionality built in these systems over the years is significant.
The good news is that all of these legacy systems are taking the steps needed to accommodate the rapidly growing digital world. Core systems are being completely rewritten to accommodate current needs, focusing on online and mobile banking and increased debit and credit cards for consumer and banking transactions. Legacy system codes are being updated to include modern digital languages to more easily work with products being used today. And perhaps most notably from the customer’s point of view, updated system core code also allows for accurate transactions and enables real-time payments.
Michael Wofford Consultants & Advisors is staying on top of these changes by meeting with the management of these core system providers. As a result, we learn precisely where each system is in its development, where it aims to be and when, and how to integrate improvements with your current banking system best.
Banks that still rely on legacy core systems need to understand that digital transformation is inevitable and must be prepared. Michael Wofford Consultants & Advisors can make sure you’re ready for the future.
What Digital Transformation Can Do For You
You may have been running your bank for generations without much need for any significant changes and wonder why digital transformation has suddenly become so important.
Digital transformation is essential for several reasons for your bank or credit union’s continued success.
- Provides an improved customer experience – Customers require more services from their banks than before. This includes online banking and card processing and comprehensive mobile banking that allows services such as check deposits, wireless money transfers, autopay, mortgage and loan maintenance, and card maintenance.
- Improves bank operation cost management – Digital transformation that integrates core systems, in-house procedures, and customer applications reduces the number of tasks bank employees need to handle directly. This makes operation costs easier to manage.
- Optimizes employee workflow. – Updated technology allows employees to work more efficiently. This can benefit both customer service and employee satisfaction.
Planning and Integrating Digital Transformation
Digital transformation has been coming for a long time. Of course, the Covid-19 crisis may have been a factor in accelerating its arrival. Still, even before that, digital transformation was inevitable for any local bank or credit union that wished to stay competitive in the 21st century.
Updated legacy core systems are one part of meeting this challenge looking at a bank’s current systems and their developing needs, what customers want, how operations can be streamlined and made more cost-effective, and, most of all, how to leverage technology to get the most out of your local bank or credit union.
At Michael Wofford Consultants & Advisors, we can guide you through this process, answer your questions, and connect you with the service and technology providers that will help you reach your goals.
Moving your bank or credit union into the digital world doesn’t have to be a painful process. With our help, you can not only serve today’s customers more effectively but tomorrow’s customers as well. Contact us now to learn more. 704-907-8501