As banks look to participate in the new digital economy, it becomes imperative to understand where they stand from a digital maturity standpoint from a multi-dimensional perspective. Cedar’s digital strategy approach is not only about understanding digital but understanding banking as a whole and how the industry is embracing and growing ‘Digital’ effectively in the next 3-5 years.
A 4-6 week quick digital diagnostic review helps in determining the readiness across 6 different dimensions, and also validate the degree of maturity from an industry comparative standpoint. Cedar approach validates the current state across 6 key dimensions:
1. Customer Experience: ability to address customer needs & enhance customer experience
2. Digital Onboarding: readiness from digital onboarding perspective & front-office services
3. Product Convergence: ability to sell / cross-sell to fulfil product needs through digital channel
4. Process Fulfilment: agility – including Straight-thru processing (STP), e-documents, e-KYC..
5. Channel Adoption: readiness of segment aligned channels to offer products and services
6. Technology Platform: digital banking architecture, initiatives, alignment with overall digital roadmap
Cedar would then determine the key implications based on the assessment including areas of alignment, met/unmet needs, and specifically identify potential areas of additional focus across the 3 key areas of the digital value chain that include:
1. Driving Digital Adoption | Enhanced Customer Acquisition
This is about ensuring that existing customers are moved significantly into self-service channels that are digital enabled and that facilitate a strong digital on-boarding experience. This applies both for individual as well as institutional customers.
2. Build a Digital STP operating model | Improved operating efficiencies
Having the customer channels alone digitised is simply not enough. It would be essential that the bank’s enterprise architecture be enabled for straight-through processing (STP) and robotic process automation (RPA), that allows for end-to-end digital enablement.
3. Connect to the digital ecosystem | Institutionalised sustainability
The livelihood of a digital banking ecosystem is not dependent just on the digital onboarding of customers and having the target operating model digital. It is significantly reliant on plugging into the digital ecosystem, which includes payments and open banking enablement through Application Programming Interfaces (API)
Based on findings from the diagnostic review, Cedar helps identify the way forward initiatives, and the Critical Success Factors that need to be addressed to tap into potential future opportunities. The initiatives also prioritized based on the complexity and their relative benefits, with a view on timelines, investments, ownerships and dependencies.
At the end of the day, it is not really just about avoiding being left-out, but also being there right-in!