There is no alternative to digital transformation for banks and credit unions, as the COVID-19 pandemic has made clear. Transformation can't happen overnight, but if financial institution leaders build a foundation of empathy, purpose and guidance they can create a powerful advantage.
Much of the focus on digital transformation in banking relates to digital delivery. During the pandemic the ability to provide banking transactions as well as to originate and process loan and new account applications in a “less-branch” environment clearly has been crucial.
But there is another aspect to digital transformation, and that is “digital growth.” In a narrow sense, digital growth for financial institutions is about embracing the modern buying journey for financial products, which 87% of consumers begin online. It also means uniting Marketing, Sales, Operations and IT around the goals of generating and nurturing digital leads and converting them into loans and deposits.
More broadly, digital growth embodies a cultural and organizational shift that is essential for traditional banks and credit unions to compete with institutions whose business models are built around a digital- and mobile-first growth strategy.