Digital Transformation in Banking: What It Means for Marketing Leaders

“The future is digital, and banking is no exception to that. So, if the advent of Banking as a Service, open banking, and the booming Fintech sector were not proof enough, we now have a roaring statistic of an expected 3.6 billion digital banking users by 2024, that puts a number to the future of banking.”
Economic Times

Retail banking locations, as we knew them, are closing on every corner, and banks have sunset their brick-and-mortar strategies. Financial institutions are transforming the way that customers interact with not only their brand but with transactions, with the goal of superb experiences that drive new business, retain accounts, and delight customers. The pandemic only magnified the consumer demand for excellent user experiences and immersive digital journeys. 

“Consumers are looking for financial services experiences that meet them exactly where they are: on their devices, using various applications, accessing their money both traditionally and digitally, and doing more with their money.” Bloomberg

In many respects, we can argue that financial services is a commodity; the differentiator is the digital experience.

Through this period of disruption, banking has evolved from transaction-based customer relationships to value-based relationships, where the customer forgets about the transaction and prioritizes experience and engagement above all other criteria (even cost). This experience and engagement engine is fueled by an integrated, interactive, contextual, and personalized digital ecosystem.

Establishing a digital division spearheaded by a multifaceted leader is key. Bank of America may be the most notable visionary in this space, having eliminated the Chief Marketing Officer position in 2021 in favor of a Chief Digital Officer, David Tyrie; Bank of America merged the marketing group with the digital banking group, thus providing the most seamless blend of customer-centricity and digital transformation efforts. Given their digital maturity as an organization, Tyrie’s focus is how the customer feels when and after engaging with the banking experience. A positive emotional experience with digital interactions lead to customer loyalty.

Investments in standing up an optimal digital experience are greater than ever, as evidenced by recent work we have done in the financial services sector, most notably with Digital Federal Credit Union (DCU). In partnership with DCU, and similar to Bank of America’s organizational approach, we identified a visionary leader to oversee both marketing and digital initiatives for the nationally expanding credit union.

As outlined in a comprehensive study by Deloitte that examines digital transformation in the banking industry, successful digital banking leaders prioritize their efforts according to the following pillars:

• Operational Efficiency: Cloud-based, cost-effective tech stack and staffing structure.

• Product Development: Standardized and solutions-oriented.

• Connectivity: Accessible and networked ecosystem.

• Data Access: Open-data initiatives and customer-consented data collection strategy.

• Customer Convenience: The best, cleanest, and outcomes-driven user experience.

Within this framework, digital experience leaders solve challenges such as: How do we reimagine the customer banking experience using AI? Do we buy or do we build? How do we ensure that digital transformation paces at the same rate as governance and reporting structures?

What are the considerations for financial services organizations in the midst of digital transformation?

Commitment begins with leadership at the executive level. Our client partners who exhibit the greatest allegiance to this endeavor establish senior roles to drive a customer-centric strategy and oversee its seamless execution. These leaders must bring both digital and marketing expertise, with a deeply integrated, technical foundation, to lead the enterprise through a sustainable, long-term digital engagement strategy. They can speak at the intersection of marketing, tech, and data. Digital product ownership, evolution, and optimization is a must. They not only drive acquisition, but ensure an optimal experience once they’ve gone through the digital front door.

Interested in learning more about our unique approach to identifying, attracting, and retaining these digital leaders? Whether you are looking to hire this executive or be an organization’s next leader, contact us to set up an introductory call.