The global Digital Banking Platforms (DBP) market size was reported to be valued at USD 4788.55 million in 2024 and is expected to expand at a CAGR of 10.78 percent, hitting USD 8850.16 million by 2027. Digitization, a pre-requisite to meeting growing customer expectations, is pivotal to the growth of the financial and banking sectors. Banking institutions are fast embracing and adopting digitally-driven technologies to achieve operational efficiencies and deliver personalized customer experiences.

While North America and surrounding regions lead the usage of digital platforms for banking, the Middle East and the African subcontinent rank the lowest on the list, slowly pacing towards establishing a holistic banking digital ecosystem.

As the banking sector strives to unlock the power of digitization, it must acknowledge that every bank operates uniquely; hence, the complexities of change differ for each. The journey of digitization can pose challenges owing to several internal and external factors, establishing the importance of a well-defined banking digital transformation roadmap.

Interpreting a Banking Digital Transformation Roadmap

A Banking Digital Transformation Roadmap is a comprehensive framework outlining the critical aspects of the transition process, including the objectives, strategies, timelines, resources, and actions required to achieve digital proficiency.

A step-wise banking digital transformation roadmap will include the following phases:

  • Top-down Approach

    A well-apprised and well-aware top management will work better to achieve the goals. As per a Forrester report, as many as 51 percent of service decision makers at banks attribute the successful execution of digital transformation to the CIO, CTO and other technology leaders. Therefore, regular interactions between the management and the stakeholders are critical to introducing and adapting any change.

  • Identifying the Goal-in-Sight

    Achievable targets with realistic timelines are the only way to establish change. Milestones must be pre-defined and a phased approach is critical to ensure the scope and scale of change are well accounted for by everyone involved. 27 percent of top bank executives aspire to achieve innovation through the use of AI, while 19 percent of respondents look for better revenue streams through digitization, as per the Forrester Data Report on The State of AI in Banking, 2023.

  • Current Business Assessment

    Assessing the 'as is' state of business is required to transform. A fact-based analysis can achieve this by understanding the gaps, the areas of improvement, and the possible opportunities to build upon. Conducting a SWOT-based assessment to gauge the system’s current standing can be an excellent start for banks looking to transform digitally.

    Example: Shenzhen Qianhai WeBank’s SWOT analysis helped it achieve its digital aspirations of becoming a leader in internet banking. Read how the renowned WeBank in China conducted a comprehensive analysis to identify its brand positioning and study the competition to successfully re-discover itself through innovation and digital technology.

  • Aligning the Right Human Resource

    Technology and transformation can only succeed if steered by an efficient and goal-oriented workforce. Ensuring the right mix of data scientists, technologists and business process experts is pivotal to digital transformation.

  • Identifying and Prioritizing the Critical Initiatives

    Driving transformation can be cost-intensive, making it essential to begin the journey with lighthouse projects that are swift to implement and can offer a quicker return on investment. While reducing financial burdens, prioritization also affirms better adherence to future projects.

  • Change Management Initiatives

    Get the entire team on board by fostering a pro-change culture. Explain the criticalities involved and the impact of digital transformation on employees and other stakeholders. Understand the sentiments and affability to change through surveys, group discussions and one-on-one interviews. Changemakers can effectively address their concerns by getting a sense of what the employees feel and fear.

  • Taking a Technological Leap

    Optimize the transformation using advanced technologies that leverage AI, machine learning, data analytics, etc. Deploying technology solutions to automate the process of ISA amalgamation requests, WNS helped YBS (Yorkshire Building Society) enhance its operational capacity and eliminate manual processing errors. Gartner’s Hype Cycle for Digital Transformation highlights that transformational technologies like composable core banking, open banking, and real-time payments mature as early as a year and should be integrated on priority. Other innovative tools for DAP (Digital Adoption Platforms), employee communication, training and bullet journals can be invested in gradually to streamline the change.

  • Carving an Agile Operational Model

    Archaic operational models that act as blanket strategies are long obsolete. There is a need to establish business-specific operational models that allow flexibility and adapt rapidly to changing digital needs. Reports state the Suez Canal Bank recently witnessed an 85 percent increase in profits, owing to an expansive digitization strategy under which it created divisions for small and medium-sized enterprises for mobile and internet banking. Agile methodologies like these accelerate customer experience and enhance brand loyalty while making room for future innovations.

Achieve Bigger and Better with a Banking Digital Transformation Roadmap

A comprehensive roadmap acts as a strategic blueprint, helping the banks understand their needs better and capture the opportunities in a timely manner. A Banking Digital Transformation Roadmap aligns the goals, highlighting deviations and efficiently steers change with minimum financial burden.

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