Bank Transformation
Transforming your bank’s operations model depends on your goal – be it to improve customer experience, streamline processes, or reduce costs in your back-office operations.
Although every bank’s approach will differ, we suggest five best practices for transforming your bank’s operational model:
- Customer-back process transformation
- Redesign end-to-end processes based on desired client experience
- Analyse trade-offs between the level of customization and the value perceived by the client
- Use a structured, consistent methodology to drive change
- Product and service simplification
- Minimize customization where the client sees no value (aspects increasingly driven by regulation)
- Align cost-versus-complexity trade-offs with the strategic direction of the business
- Standardize processes and supporting platforms to drive digitization of client experience
- Aggressive digitization
- Use digital media to create better front-end client interactions (paperless statements, tablet interfaces, etc.)
- Implement straight-through processing to avoid manual processing
- Form partnerships with niche and non-traditional service providers to build and deploy digital capabilities
- Governance and performance management transparency
- Establish and reinforce clear accountabilities, decision rights, and stakeholder roles
- Define goals and incentives that are clearly aligned with strategic imperatives
- Adhere to a metrics-driven culture with key performance indicators (KPIs), unit cost management, etc.
- Delivery model optimization
- Move to shared-services or utility models to maximize scale and reduce costs within regional banks • Integrate and align process-centric IT operations capabilities
- Increase integration of third-party providers into the delivery model to add variation to cost and to build capabilities
Banks with successful operations transformation programs achieve four benefits:
- Enhanced client experience
- Eliminate customer pain points
- Improve responsiveness to clients
- Streamline process
- Operational and cost efficiency
- Reduce cost by driving out variability
- Create capacity and scale
- Provide cost-effective services
- Risk mitigation
- Ensure consistent and auditable controls
- Align operating model
- Continuous improvement
- Define standard processes
- Train the organization in process-oriented thinking
- Install a culture of continuous improvement into organization
Aligning your operation’s performance goals to your business priorities, will help your bank enhance its most distinctive operations capabilities and meet your transformation objectives.
DALED a global team of practical strategists committed to helping you seize essential advantage. We do that by working alongside you to solve your toughest problems and helping you capture your greatest opportunities.
Whether you’re charting your corporate strategy, transforming a function or business unit, or building critical capabilities, we’ll help you create the value you’re looking for with speed, confidence and impact.