Traditionally, banking is known as a conservative sector. However, the radical changes in customer demands, regulatory requirements and competitive environments fueled by digitization are forcing bank CIOs to replace their online and mobile banking solutions. “Being change adverse is not an option,” says Stessa Cohen, research director at Gartner. “Bank CIOs planning to acquire a new digital banking solution must decide between two types of digital banking solutions: multichannel solutions or digital banking platforms.”
“ Every bank CIO should have a primary goal for digital banking”
To succeed, CIOs must choose an approach that supports their banks’ strategic priorities, and the ability to be sensitive to customer needs, goals and other requirements.
The multichannel approach: When cost optimization matters the most
The multichannel approach is a good fit for banks that are still rooted in the traditional banking business, and have not yet tackled the cultural and organizational changes required for a digital banking transformation. The goal is to replicate and update the current functionalities, reduce friction between online and mobile banking capabilities, and streamline processes in those channels. This leads to reduced costs and a better customer experience without any major changes.
“When CIOs decide to prioritize cost efficiencies, it does not mean that they are opposed to digital transformation per se,” Cohen adds. “They simply acknowledge that transformation — at the moment — is not the primary driver of the business and that the organizational culture is not ready yet for the demands and challenges that a digital banking platform brings. Additionally, the multichannel approach is not a one-way street, but a partial foundation for future steps toward real digital transformation.”