Why Banks Must Embrace Automation for Growth Amid Regulatory Flux
Key takeaways
- Banks are investing strategically in technology to create operational efficiencies and drive profitable growth amid pandemic disruption and M&A activity.
- Disjointed, outdated legacy technology makes it hard for many North American banks to meet digital-first customer expectations.
- Automation delivers quick wins on the two key battlegrounds of customer experience and operational cost savings.
- Digitalisation is no longer just about protecting the bank; it is essential for revenue growth.
- Mizuho Americas exemplifies success, reserving technology investment for areas of true competitive advantage and delivering during the pandemic without delay.
As banks seek ways to facilitate profitable growth, many are evaluating how they can create more operational efficiencies by strategically investing in technology. Leading banks have been driving transformation for years, but with the disruptions caused by a global pandemic coupled with a flurry of M&A activity; financial services firms of all sizes are strategizing on how to best capitalize on the market dynamics of 2021 and beyond.
For the majority of banks in North America, the technologies underpinning their critical operations have evolved over time and are often disjointed and outdated. This makes maintaining the high standard of service that digital-first customers expect a significant challenge.
The nature of the industry today will either create opportunities for those that are technologically equipped to adapt to change or will have the opposite effect on the laggards.
How Automation Creates All-Important Quick Wins
Digital transformation projects take a long time. Banks are looking for ways to create quick wins for overall transformation. We know that one of the key battlegrounds for banks is customer experience and operational cost savings.
Digitalization and automation initiatives are no longer just about protecting the bank but also essential for revenue growth.
One of our most recent-client success stories-comes from Mizuho Americas. Its execs summed up the digital transformation strategy as follows: “Our philosophy is to reserve firepower for things that we feel offer truly competitive advantage in making our business more successful.”- This is a great example of technology driving success, with implementation taking place during the COVID-19 pandemic without any delays.
Moving Forward
Now, as we emerge from the pandemic, the technology lessons we’ve learned are key to success, and more crucially growth. The right technology can deliver more than just transformation. It creates those all-important wins, keeps people motivated, and most importantly keeps customers engaged and happy.
Banks need to keep their eye on those enablement wins on the pathway to achieving truly digital client servicing that powers future growth.
Frequently Asked Questions
What philosophy did this company's executives describe for their digital transformation strategy?
Its execs summed up the digital transformation strategy as follows: “Our philosophy is to reserve firepower for things that we feel offer truly competitive advantage in making our business more successful.”- This is a great example of technology driving success, with implementation taking place during the COVID-19 pandemic without any delays.
How are financial services firms strategizing to capitalize on market dynamics in 2021 and beyond?
Leading banks have been driving transformation for years, but with the disruptions caused by a global pandemic coupled with a flurry of M&A activity; financial services firms of all sizes are strategizing on how to best capitalize on the market dynamics of 2021 and beyond.
How are banks pursuing profitable growth amid regulatory flux?
As banks seek ways to facilitate profitable growth, many are evaluating how they can create more operational efficiencies by strategically investing in technology.
