Is there ever a right time to embark on a digital transformation project? Do companies who see disruption as an opportunity win, or are those who hunker down and weather the storm better off?
One thing's for sure, the past few years have been particularly disruptive for banks. Soon after the pandemic came a deteriorating economic landscape that's now weighing on transformation efforts. With pressure to change mounting, banks must find ways to press ahead while volatility remains.
"Before this turbulent period started, we would all agree that, as an industry, we were not where we wanted to be," said Leda Glyptis, Chief Client Officer at 10x, in a recent interview with the Fintech Power 50. "Enter left, one of the most turbulent periods in human history with event upon event piling to add complexity and strain on resources. It's important to think about that double impact – we were not in a perfect place to start with."
How should banks navigate turbulent times?
There are lessons we can learn from the start of the pandemic, which underscore why banks need better digital provisions during uncertain times. Take mortgages, for example. With lenders forced to offer payment holidays, banks that relied on legacy technology struggled to update their systems quickly enough. Leda outlines one instance where a bank drafted in a dozen COBOL engineers at the start of lockdown, some lured out of retirement, to spend six weeks fixing the problem. By contrast, banks using cloud-native core platforms like SuperCore™ can update their product book in minutes. "It's not just about improvement. It's about survival." Adds Leda.
Banks need to intensify their digital transformation efforts by going all in—not just working on small modernization projects but overhauling the core of their operation.
What are the secrets of digital transformation?
"For a long time, the industry approached digital transformation as a technical question," explains Leda. "As an industry, we hadn't anticipated 10-15 years ago how much the digital transformation journey would change business, pricing, and distribution models. It became apparent very quickly that it wasn't just the transformation of your systems; but the transformation of your business."
Since digital transformation isn't a fixed destination, banks need the right people overseeing the change. People who can apply new ways of thinking and course-correct as required over several years.
Having the right technology to support that transformation is crucial. A cloud-native core banking platform like 10x SuperCore™ enables banks to transform into a bank that customers love. Faster and more cost-effectively.
"We offer a fully managed service for core banking," Leda adds, "It takes away a lot of the complexity we consider utility. There are many essential components that make up a scalable and secure digital banking proposition. Banks no longer need to build these themselves. With the utility taken away, banks can focus 10x more on what matters – the customer." Talk to us today to learn more.