1. Obsess over customer needs
As a starting point, banks should base their decisions about which transformations to pursue, and how to execute them, on a rich understanding of their customers’ needs and behaviors. By analyzing internal banking transaction data, surveying and interviewing customers and conducting external research, they will detect signals about which potential new products, features and applications customers would value.
Customer data provides pointers about implementation, setting the course for transformation. For example, by analyzing the points at which customers typically drop out of a product application process, banks can streamline the way people sign up for new products.
In customer-centric transformation, this happens right at the outset: the entire process of transformation is guided by a deep appreciation of customer demands. In contrast, business-driven transformations start with financial analysis: what is the projected revenue and profit and is there potential for growth? Then product features are designed, pricing is decided and client onboarding is built. Customer research might be conducted, but it is an afterthought.
Sometimes, customer preferences do not dictate transformation because they are not considered to be as important as hard financial projections. In other instances, banks understand the importance of customer data, but they struggle to access it because it is siloed in an inaccessible system or business function. This means that alongside their customer-centric transformation, banks often need to carry out a data transformation that gives access to key customer data to the teams that need it.