September 16, 2024
Digital transformation implies constant evolution, constant change. For forward-looking financial institutions, this means there is always work to do.
This theme was the center of a recent panel discussion at MoneyLIVE North America in Chicago. Valtech Americas Chief Technology Officer Mark Ardito participated in the discussion with a select group of senior leaders from financial institutions to talk transformation.
The session, titled “Operational and Digital Transformation: Defining Your Priorities,” explored how financial organizations can design tailored digital roadmaps, assess their own digital maturity, optimize organizational structures with agile teams, and leverage different technologies to enhance operational efficiency and talent management.
The full panel included:
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Richard Olejniczak, Senior Vice President of Data Programs and Business Analytics at WinTrust
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Sean Murray, Chief Product Officer for Barclays
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Scott Lippert, Executive Vice President and Chief Operating Officer of Contact Centers at U.S. Bank
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Mark Ardito, CTO-Americas at Valtech
Below are four takeaways based on that discussion.
1. Transformation is a continuous journey
No organization transforms just once, or twice, or three times. Organizations evolve. They keep progressing and finding ways to move forward. Transformation is therefore something without an end.
For financial institutions that understand they’re playing an infinite game, the challenge then is to find the right balance among technology, operations and customer experience.
Transformation efforts must go beyond superficial changes, instead requiring organizations to assess their technological depth and operational processes while also enhancing the customer journey.
Successful roadmaps must move beyond "nice glitzy things" and strike a balance between great customer experiences and robust operational structures.
2. It’s time to move beyond traditional models of digital maturity
During the panel discussion, Mark challenged traditional methods of assessing digital maturity, arguing that the pace of technological change renders old maturity models obsolete.
“Things are moving so fast right now that you can’t afford to take the time to measure yourself against that,” Mark said.
Instead of focusing on where an organization sits on a traditional matrix, he urged companies to “focus on outcomes” and identify areas where technology, data and talent can have the most significant impact.
This more dynamic approach to digital maturity reflects the growing importance of data in general. Mark broke this down into three paradigms:
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Data awareness
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Data-informed decision-making
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Being fully data-driven
How a company scales across those paradigms defines their digital maturity.
3. People and strategy first. Tech second.
Tech stewardship and human accountability came up several times during the discussion.
From a data perspective, the panel emphasized that organizations need to ask themselves, “What do we want to do with our data?” The business strategy always comes first. Tech decisions follow from that.
That same business strategy-first thinking should guide operations. The technologies in question can process information and automate tasks, but financial institutions must have people with business knowledge who understand the organization’s business goals.
4. Look for ways to unlock efficiencies with automation and AI
Automation and AI have emerged as game-changers in operational transformation, particularly when it comes to repetitive, rules-based tasks.
Mark discussed how automation can relieve employees from mundane tasks, allowing them to focus on work that is more strategic. For example, automating tasks in the credit appeal process can lead to significant time savings and allow employees to focus on more complex decision-making.
AI-driven tools, including generative AI, are helping organizations deliver better customer experiences. For instance, by using AI to predict customer behavior based on previous interactions, banks can offer proactive support and resolve issues before they escalate.
The big picture: Keep your priorities in focus
As digital transformation continues to reshape the financial sector, the winning formula balances technology, people and processes.
Focus on the outcomes that you want to hit through your organization. Don’t get focused around the inner workings of technology.
— Mark Ardito, Americas Chief Technology Officer at Valtech
By fostering an environment of accountability, agility and innovation, financial institutions can successfully navigate the challenges of digital transformation while ensuring both employees and customers benefit from the change.
To learn more about how Valtech supports financial organizations through these changes, see our Financial Services page.
