Top 3 digital transformation strategies for the financial services industry
June 13, 20225 min read
The digital transformation of any organization can be daunting. But in a risk-averse industry that needs to be mindful of security and compliance hygiene, a digital transformation in financial services can be even more of an undertaking. Even so, the evolving industry landscape calls for banks and financial service providers to quickly and efficiently execute a strategy to digitize processes and scale technology to meet growing customer expectations.
“As the rate of transformation accelerates, there’s a growing gap in digital maturity levels between organizations that have already centered operations around digital models and those that are still pivoting.”
- BDO, 2021 Financial Services Digital Transformation Survey
A digital transformation can create greater alignment between teams, increase transparency within the organization, and enable customers to do business more seamlessly. But the transition may not always be smooth — especially without the right strategy in place. While keeping business objectives in mind, take into consideration the following digital transformation strategies.
1. Collect insights and analyze data
The best digital transformation strategies are informed by data. Consider the enormous amount of structured and unstructured data you already have from customer interactions on your website, social media, and through your customer care team. Then supplement it with data you might be missing, such as:
Competitive insights and benchmarking
Media monitoring and analytics
Synthesizing this data into actionable insights should be the first step of your digital transformation. It can help you understand:
Digital channels your customers prefer
What your customers and prospects think about your brand, products, and services
Learn what your competitors are doing and act on these insights
And, ultimately, how you can improve the customer experience
This 360-degree view of your target audience, customer experiences, and your own organization will help you prioritize the most impactful digital initiatives for your business.
For example, maybe the insights you gained from AI-powered listening show that your customers strongly prefer to do business on an app instead of in-person or even a website. In that case, you may want to invest more into the development of a designated app to ensure a positive user experience with effortless mobile capabilities and seamless live chat or AI chatbot support.
Or maybe you learn that your customers are asking questions, sharing concerns, and giving feedback through certain social media channels — but you’re not there to address them. And, in turn, resulting in negative sentiment about your brand. You may want to allocate resources to a more robust social media strategy that includes engaging with and responding to customer interactions on these preferred channels. Regardless of the path you choose to take in your digital transformation journey, be sure to let data inform those decisions.
2. Leverage the power of social media
Social media has become the source of truth for many consumers. They’re using platforms like LinkedIn, Instagram, Facebook, and Twitter to research companies and read reviews before investing time and money into a brand. They’re leaving feedback, sharing concerns, and asking questions about products and services. In the financial services industry, if you’re not meeting your customers on these digital channels, you are missing out on opportunities — and even inadvertently damaging your brand’s reputation.
There are many different ways your organization can capitalize on the use of social media, but the most common way is by posting to and interacting on your corporate brand handles. Automating social publishing and engagement is an easy way to ensure you’re engaging with your customers on the channels they prefer. In the financial services world, though, corporate brand handles usually aren’t accessible to local branches. Use a local social solution to enable regional branches to reach a more targeted audience and ensure regulatory adherence and brand compliance.
And, if sales representatives are eager to speak directly with potential customers, social selling solutions can be a great way to identify, connect with, and nurture prospects. Many financial advisors are starting to realize that social selling is a great way to grow their business.
3. Choose the right technology for a highly regulated industry
It can often feel impossible to execute a successful digital transformation strategy in the financial services industry. With so many regulations to adhere to, data to sift through, and tools to choose from, the right solution can make all the difference. The mistake that many companies make is selecting a different solution for each need: social media managers have one tool for posting to and engaging on branded handles, the data and analytics department has yet another tool to gather metrics and view dashboards, and the customer care team has another tool for communicating with customers and addressing issues.
For financial services companies, though, there’s no room for error. Silos between departments can cause confusion, misalignment, and mistakes that can lead to costly regulatory fines. Selecting a Unified-CXM solution for all front-office functions not only facilitates communication across customer-facing teams, but also fuels better experiences for your customers. A single, unified platform can help you bring your omnichannel strategy to life at every customer touchpoint while ensuring regulatory and brand compliance — a must-have for executing a digital transformation strategy in the banking and financial services industry.