What is next for banks and financial services organizations after their initial digital transformation 

Aug 24, 2022 | Automation, Camunda, Development

A study carried out by Google and Boston Consulting Group revealed that banks are achieving 20% revenue increases and up to 30% cost savings after their first phase of digital transformation. Continue reading to understand how.

Investments in information technology in the banking industry have increased exponentially in the last years. Now that digital transformation in banking is a reality, what comes next? Here, we will show how the search for higher levels of digital maturity has led banks and financial organizations to boost their businesses – we will present cases with real market numbers to illustrate how to obtain quick results. 

Banks are among the companies that best reacted to the impacts caused by the pandemic, by increasing their investments in digital transformation. On one hand, banks are growing at a fast pace, even while several other industries are struggling. On the other hand, it means that competition is even fiercer: how to differentiate yourself and take a leap forward? What to do after digital transformation in banking and financial services? 

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Digital maturity in the banking industry 

Digital maturity can be understood as a more advanced step after digital transformation. It goes far beyond developing applications and automating processes – it involves the company’s culture, its structure and its efforts to create a hyper-digitized environment capable of providing its customers with the best service on all channels. Launching new digital products, replacing legacy systems, automating processes and adopting omnichannel solutions are just a few examples of initiatives that banks need to constantly invest in to reach higher levels of digital maturity. 

This revolution is already on course. The number of U.S. neobank customers rose to 20 million at the end of 2021, according to Insider Intelligence, and is projected to reach 39 million by 2025 (about 19% of the U.S. adult population). Considering the size and value, by 2028, the North American digital banking market will be worth $600 billion¹. 

At this moment there is still plenty of room to grow by differentiating. On the other hand, traditional banks or even neobanks that don’t get digital done right, will risk a loss in market share, revenue, and credibility. 

Some benefits of digital maturity in banks and financial organizations 

  • More revenue, less costs: Recently, an international study by Google and BCG (Boston Consulting Group²), revealed that investments in digital transformation in banking and financial services resulted in companies with a high level of digital maturity, leading to revenue increases by 20% and cost savings of up to 30%. 
  • Exponential increase in competitiveness: A bank with high digital maturity is able to create disruptive business models and surprise with new digital products, gaining market share and bringing new customers, jumping many steps ahead of competitors and achieving high rates of return on their investment. 
  • Ability to develop new products much faster, allowing for significantly greater potential for attracting customers. 
  • Strong digital culture, always ensuring the evolution of mobile applications, delivering better levels of user experience and increasing customer satisfaction and loyalty. 
  • Digitally mature work culture, capable of accelerating results and using digital tools in a more efficient and integrated way. 
  • Continuous investments in digital transformation in banking and financial services prove to help build stronger security technologies and better methods of combating fraud. 
  • Time optimization and greater productivity. 
Onboarding and Know your customer template - NTConsult

Success Story 1 – Transformation of a financial company into a digital bank: 1 million new bank accounts in just 3 months 

Transformation of a financial institution into a digital bank. NTConsult was involved in the entire digital transformation of the client. After the implementation of all digital products and services, we continued to work to raise the company’s level of digital maturity and increase its competitiveness.  

Some of the main services delivered

  • The entire digital transformation, including mapping, orchestration and automation
  • Development of all applications, systems and other digital solutions, as well as their integrations, to allow the bank a total digital transformation and provide a data-based culture that would allow the search for higher levels of digital maturity. 

Featured systems and automations

  • Development of a platform that allowed the sale of all the bank’s products (over 100 products) in which there are macro activities such as bureau consultation, fraud validation, data and document collection, credit analysis. 
  • Automations that allow the specificity of each product, triggering its specific process. This development improved the experience for the end user, allowing them to contract more than one product at the same time, not having to open an account only after contracting other services. 
  • The end-to-end process automation, allowing the coexistence of the new system with the legacy ones. 
  • Development of an architecture based on microservices, with tools for integration (using Camunda BPMS). Automated processes have the intelligence to know when to trigger new architecture or legacy services. 

Short-term highlight result

  • With an intense beginning, it was possible to provide a new APP for opening a digital account quickly. 
  • In just 3 months, it made it possible to open 1 million accounts and credit cards. 

Highlighted mid- and long-term results

  • Constant evolution of all applications, ensuring higher levels of user experience, building customer loyalty and increasing the bank’s revenue and profitability. 
  • Continuous staff augmentation work to increase the IT team, quickly ensuring high performance professionals, accelerating the development of new automations and new digital products, raising the level of digital maturity. 

Success Story 2 –  How a change in customer facing technology increased customer satisfaction and double sales

Watch the video below to know better about how omnichannel strategies work and the results of this case. Although this client belongs to the insurance industry, this strategy can be applied in several segments, including the banking sector.

At NTConsult, we are a Nearshore IT company with close to 20 years of experience in the digital solutions market, with clients in 8 countries, working with companies from all markets – with a strong emphasis on the banking industry and financial institutions (our solutions are cited as successful cases by leading organizations such as World Bank and Inter-American Development Bank). 

As we work with nearshore LATAM based IT Talents, we offer competitive pricing, with English speaking IT specialists that work in your time zone and are aligned with your country’s culture, which ensures real-time communication without language barriers and greater synergy with your teams working on your projects. Nearshoring with Latin America based professionals is a great choice for North American companies.   

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Get in touch with us in the quick form at the bottom of this page and let’s talk about your business challenges. We are always ready to help your company achieve its goals through technology. 

If you liked this article, you will also be interested in some of our related articles here in our insights. 

Reference 1: https://thefinancialbrand.com/news/fintech-banking/the-battle-for-consumer-attention-in-the-digital-banking-war-149610/  

Reference 2: https://www.bcg.com/pt-br/   

Philippe Alencar - NTConsult

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