Banks must embrace perpetual change mindset to thrive long-term

Liz High

29 August 2023

In the ever-evolving world of banking, change is the name of the game. But banks face the pressing need for enhanced services and experiences using outdated systems that too often just don't cut it anymore. With a keen eye for progress, senior banking decision-makers are now more likely to seek partnerships to help them meet the ever-growing expectations of customers and employees. It's clear, if current systems can't be replaced quickly, they must be enhanced or bypassed entirely. 

But don’t view this as merely another project or initiative ‘du jour’, digital transformation demands a long-term commitment and never done mindset.  

The pandemic may have accelerated the need for change, but simply digitalizing existing banking products and services will fall short of customers’ new demands. So, what's on the minds of financial institutions as they gear up for whatever lies ahead? 

Digital transformation as a lifelong mission 

An intriguing report from IBM reveals that a staggering 71% of financial institutions recognize the vital role of cloud technologies in achieving the full potential of a digital transformation. Enter cloud-native fintech solutions, rapidly deployable and particularly attractive in today's market conditions. It's a brave new world out there, and it calls for differentiated, targeted customer experiences that will propel banks through and beyond the challenging landscape of 2023. 

Gone are the days when generic approaches sufficed; now, customization and personalization are the keys to capturing the hearts and loyalty of customers. To thrive amidst fierce competition, banks must craft tailored experiences that resonate deeply with customers’ individual needs and preferences. 

The power of differentiated customer experiences 

It is no surprise that improving customer experiences takes the top priority spot for one-third of these institutions. With the proliferation of niche banks catering to specific communities and needs, traditional banking organizations face the daunting task of making a lasting impact. The solution? Agility. 

The ability to roll out innovative offerings quickly is crucial in staying ahead. In a digital era, time is of the essence. By applying agile processes and technologies, banks can swiftly respond to market trends, customer preferences, and emerging opportunities. This enables them to seize the moment, captivate customers, and establish competitive advantage. 

Partnering with fintechs as a catalyst for change 

But how do long established institutions navigate the turbulent waters of change and competition? Partnering with fintechs emerges as the catalyst for transformative growth. While risk-averse financial institutions may be inclined to reduce budgets and lengthen purchase cycles, savvy senior banking decision-makers are on the lookout for solutions that will bring new experiences to the market rapidly and offer a clear path to rapid and profitable revenue. Taking this type of bold move will separate the frontrunners from the laggards. 

Thriving in 2023: aligning with fintech trends 

To thrive in 2023 and beyond, financial institutions must stay attuned to the latest fintech trends. With 33% of global institutions actively seeking partners to help them keep pace, the message is clear: they're listening to experts, strategizing how to propel their institutions forward, and seeking the support and ideas to help them think differently. 

Are you interested in more real time data around financial attitudes, behaviors and trends to sharpen your business strategy or marketing plan?  

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