Read this blog contents in article as guidance for existing financial or banking firms interested to take advantage of Digital banking. Copied generic part of articles here for my reference( forgot the actual source. Sorry!)
Focus on where the real value is Launching a successful new business requires complete clarity about what its value drivers are. While this seem like an obvious point, we find it is often overlooked. Instead, there is a temptation to copy or replicate existing models.
Constantly test to refine the customer experience Launching a successful new digital-banking business requires a marriage of traditional consumer research and a deep, real-time understanding of the behavior and pain points of individual customers. This means a constant and rapid stream of prototypes starting with the Minimum Viable Product (MVP) and subsequent iterations in order to figure out what will make the customer experience superior across all touch-points. This sort of “real life” testing is critical for identifying what customers actually value as opposed to what they might say they value. It also yields up to 70 percent fewer defects and errors.
Organize for creativity, flexibility, and speed Building a business using a constantly iterative approach requires a way of working that banks typically aren’t used to. There are three areas where a different way of operating needs to be nurtured.
- Cross-team collaboration. The core group building the digital bank should have a solid understanding of not just the new technology architecture, but also of the bank’s design and brand and the economics of its business model.
- A ‘garage like’ working environment. While an actual garage isn’t necessary, a physical space that provides a nurturing environment for creative thinking and prototyping is. This means open spaces, plenty of whiteboards and worktables where people can congregate and work together, as well as habits that foster innovation, such as so-called sprints
- A central ‘control tower’ team. Launching a digital bank is a juggling act, with multiple miniprojects running at the same time. It is the job of the control-tower team to make sure all these projects are coordinated by moving resources to necessary teams quickly or prioritizing initiatives so that timeline targets can be met. The team must work to identify bottlenecks and then either quickly resolve them or refer the problems upward to the CEO or the board.
Create an ecosystem of partnerships Successfully launching a new digital-banking business requires quickly acquiring a critical mass of customers. Two industries with large amounts of digital customers who can help the process are e-commerce marketplaces and telecommunications.
Build a two-speed IT operating model To implement the test-and-learn approach and short release cycles that are so critical for launching and operating a competitive digital bank, two different yet integrated IT systems are needed: the traditional, slower, secure and stable, transaction-focused legacy back end and a rapid, flexible, customer-centric front end.
Get creative with marketing To communicate such distinct selling points cost-effectively, banks must cultivate word-of-mouth recommendations and feedback through social media