Every consumer desires and expects smooth and personalized service that is available 24 hours a day, seven days a week across many channels. Banks must first improve the efficiency of their digital banking solutions in order to make this possible. As a result, we’ll need a strategy that puts the digital first. According to the many banks’ senior operations executives, approximately 40% of digital transformation expenditures in the operations of North American banks are predicted by 2020s.

So, what steps could banks take to become more future-ready and simpler in their operations? Strategic planning, the utilization of the best technology, like Oracle digital banking experience (OBDX) and partner available, a shift in mentality, and a well-trained workforce can all assist in the process of improving performance.

Four significant roadblocks hamper the implementation of new core banking systems.

In spite of having a mandate and a strong desire to change, the following four difficulties are the most typical roadblocks to digital transformation in a digital bankingplatform:

1. Getting a handle on where to begin

There are so many elements to consider, such as markets and consumers; business models; items; locations; distribution methods; information technology systems; and competitors; deciding where to begin your transformation journey can be difficult. It necessitates agreement among bank management on business and information technology priorities for the future target state of the bank, an understanding of your bank’s starting position (think customer vision, customer and employee experiences, and legacy constraints), and an agreement on where you want to be within the bank. Other considerations include identifying places where it is easiest to develop momentum, has the largest influence on the customer experience, is most subject to regulatory scrutiny, and is most vulnerable to old systems being the sole point of failure.

2. Selecting the most acceptable technological solution

A number of fast emerging digital technologies, including cloud computing, artificial intelligence, application programming interfaces (APIs), and core legacy system replacements, are resurrecting core banking. COOs and CTOs of financial institutions are faced with a difficult decision when attempting to choose which technology would best suit their institution’s objectives in the face of an ever-expanding menu of options.

  • Take into consideration the future business and operations models while making technology decisions.
  • Take care to ensure that the suppliers you select are aligned with your vision, have representation and qualifications in your geographic area, and can satisfy the needs of your future road map.
  • Utilize the cloud and APIs to their maximum potential for increased agility, efficiency, control, and speed. Don’t settle for anything less than what you are truly entitled to receive.

3. Getting rid of outdated systems that are a hindrance

Technology-based solutions, such as cloud computing, digital decoupling, open APIs, data lakes, and robotic process automation make it easier than ever for financial institutions to break free of their foundational, traditional IT infrastructure. Banks may quickly increase IT flexibility, speed, and efficiency by incorporating digital elements into existing programs rather than performing a complete “tear-and-replace.” To differentiate its retail and wealth management services, a European bank has complemented its existing legacy systems with new digital layers on top of its historical information technology infrastructure (IT).

4. Restructuring the workforce to meet new needs

When financial institutions strengthen the talents of their back-office workers and give them a broader selection of technology-based solutions, they can experience a significant increase in their profitability. The value of “back office” labor must be re-valued, the structure must be re-structured, the workforce must be re-trained, and the workforce must be re-deployed to meet new work arrangements and performance requirements in the digital economy. Developing and implementing a new human-plus-machine workforce capable of driving transformation and creating value from digital operations are also required. It is expected that the usage of artificial intelligence would free up between 25 and 30 percent of human capacity, allowing people to devote their time and energy to higher-value jobs.