We are all trying to accelerate our digital transformation. Yet, when you have one foot in the traditional world and one in the digital world, you find you are about to be split in two.
Traditional, brick and mortar financial institutions are struggling at various levels to define the digital user experience. Unfortunately, 100% digital institutions are “all-in” on digital and can easily develop digital products at a much faster pace.
A report by International Data Corporation (IDC) in the Financial Brand indicated that there are “islands of innovation,” but most are falling behind. Only 36% of financial institutions say they have “digital offerings executed on a project-by-project basis.” Also, 34% believe that digital transformation goals are “focused on near-term goals and products.” But few are working on long-term goals and development of a digital core.
The IDC says that those who are “leading the race to digital transformation have 3 characteristics:
- A strong executive commitment, which leads to a collaborative culture
- A focus on the “digital core,” including analytics and open, agile technologies
- A willingness to partner with external providers
Developing a digital core—a digital strategy that leads the organization forward—is a strong recommendation for us all. Until digital becomes the core strategy, it will continue to be an ad hoc part of any strategic plan or implementation. So how do you future-proof your organization? Make a digital core.