Intractable or Solvable? Can Banks Both Innovate & Maintain?

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Answering Key Questions About The Digital Banking Transformation Journey.

Threats and opportunities are the new-normal in today’s global world of banking. Those at the helm must integrate their financial systems and bring innovations to the boardroom table while, at the same time, continuing to manage business that is increasingly complex and compliance-driven. How can they possibly do both? And is this problem intractable or solvable?

A newly published Hewlett Packard Enterprise (HPE) report explains that financial institutions require a ‘New Style of Banking’ in which the business is more closely aligned with IT, able to react quickly to the changing business landscape and even anticipate its evolution.

What does this actually mean? It requires the bank to examine its various channels – web, email, phone, chat, SMS, mail, branch, ATM, and more – and ensure that each is fully digitized. It also requires the bank to automate its operating models; it may be necessary to stop some traditional services and start offering new ones; it will almost always require the removal of operating silos and the merger of some previously separate business processes. Combining these two sets of activities achieves a so-called digital transformation.

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A digital banking transformational journey is not for the faint-hearted. Will transformation be worthwhile? The HPE report claims that – correctly undertaken – it will achieve better, cheaper customized products, faster service, and an improved customer experience.

HPE customers report savings, including budget reductions and incremental activity absorption with decreasing marginal costs. They achieve greater control, with a reduction in operational risk and variance, and better traceability of states and activity levels. Most customers experience improved agility, with an accelerated accommodation of regulatory changes, and a reduced time-to-market. And ultimately they benefit from higher quality with fewer errors, lower costs, and the perfect combination of less run-budget (for the general day-to-day expenses of keeping the IT infrastructure running) and more change-budget (for the things that will transform the organization, e.g., the right technologies for new capabilities, altered business processes, and new service offerings).

How will this impact the business? There are three key changes: more straight-through processing (minimizing the human input required to process transactions with a far fewer errors and much higher quality), more self-service channel usage (effectively empowering customers to carry out their own banking activities while concurrently automating processes and planning for risks), and more first-time resolution (solving customer issues at first point of contact, which contrasts with current centralized models where most transactions end up in central operations).

What’s the best approach? We offer the Hewlett Packard Enterprise Digital Banking Framework, a transformational framework for automating key steps in financial business processes. It integrates with existing legacy and core banking systems and transforms financial operating models. And HPE has found that this framework produces a series of productivity gains of up to 46% depending on the initial maturity level of the processes.

To read more, click on the HPE FSI Key Propositions: Digital Banking brochure below:

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LPLuis Pascual is responsible for all Hewlett Packard Enterprise Services led Financial and Insurance industry client accounts in the EMEA South Cluster Region. His organization is responsible for driving account growth and for the provision of Consulting, Integration and Outsourcing services in the IT Infrastructure, Applications and Business Process (BPO) spaces for Banking & Insurance customers. Luis has an extensive experience in the Information Technology and Services arena for the Banking Industry, in which he has held different positions in both International Expansion, and Consulting & Sales projects. Luis holds an MS in Telecommunications Engineering by the Universidad Politécnica de Barcelona, a PDG (General Management Program) by IESE Business School as well as a Postgraduate degree in Software engineering by INTI Microsoft Institute.