Note — this is section two of our new content series: Redefining digital transformation.
Read section three: Aligning digital transformation with the customer lifecycle
Read section four: Avoiding the pitfalls of point solutions
The case for digital transformation may be clear to you. But getting institutional buy-in can be tricky, with key stakeholders hoping to minimize cost, risk, and in many cases, a change to the status quo.
Digital change is happening all the time and all around you. It is a necessary and fundamental “next step” for your growing business.
To help justify the case for digital change at your bank or credit union, Blend leveraged McKinsey’s framework identifying three rationales for technology adoption. As you make your pitch, you can leverage market competition, bottom line pressures, and consumer experience as key drivers.
These three drivers will help you get everyone on board early in the process, strengthening your digital transformation, increasing your chances for success, and boosting your ability to deliver superior customer service.
Want to know more about the key drivers that can help support the digital transformation your customers deserve?
Download: 3 drivers supporting a business case for digital change
Digitization is the new normal. Nearly all banks and credit unions are now working on digital plans. A “keeping up with the Joneses” framework can be helpful as you make the case for digital transformation.
Several large financial institutions have already moved aggressively, launching their own neobanks to go head-to-head with the disruptors. Others are partnering with fintechs to reach their goals.
Your company doesn’t want to be the one left behind.
Margin compression is rearing its head again as an industry-wide concern. Banks have a renewed need to innovate and find cost savings wherever possible, especially since volume volatility makes consistent revenue opportunities difficult to predict.
Digital platforms directly support a customer-focused restructuring of your bottom line. BCG found that “banks that make a full digital transformation can reduce operations costs by 20% to 40% over three to five years.”
Digital transformation can deliver what today’s consumers want and expect — simplicity of use, efficient processes and personalization experiences.
A better customer experience drives two things: winning new customers and customer loyalty.
Building your customer base will directly enhance your bottom line. Building customer loyalty will result in deeper relationships, leading to sustained revenue over time.
Ready to make the business case for digital transformation and build deeper relationships with your customers?