The Next 5-Years of Financial Services Digital Transformation
May 9, 2012 § Leave a comment
May 9, 2012 Large-scale social and digital initiatives are becoming a standard part of future-focused programs at today’s leading financial institutions. In talking with peers, vendor partners, and those within the financial services industry…this much is becoming clear and it will have big implications for the next 5 year. Here are several of the areas of focus for these programs:
- Social Media is slowly, but surely, transitioning from a marketing and campaign vehicle to a set of technologies and capabilities transforming sales and distribution, customer service, market research, and future product development. Today, large insurance and wealth management firms are reporting that top performers all leverage social channels as a significant portion or their lead generation success. Social customer service is becoming a standard element, but not one operated very efficiently. Market research and innovation teams are realizing success from mining social data and open innovation, but not maximizing its potential. All of this is just the tip of the iceberg and it is now time to start the hard work.
- Key Takeaway: Social networks and social computing concepts will be fully embedded into leading firms within the next 5 years. Firms that want to be competent in 5 years needed to start the journey yesterday.
- Enterprise Collaboration is going from pilots to multi-year programs changing how firms work internally. These are c-level initiatives that impact access to knowledge, communication costs, customer satisfaction, relationships with partners, and speed of innovation. Those embarking on enterprise-wide collaboration will dedicate significant resources and shift focus from platform purchasing to transformation management.
- Key Takeaway: Enterprise collaboration will receive budget dollars similar to that of CRM several years ago. This will become big business for consulting firms as organizations seek to roll-out collaboration programs from small pilots of 5000 – 10,000 users to 100,000/200,000+.
- Customer Experienceis an evolving art and science that most retail financial services perform fairly in. However, the next generation of analytics engines along with big data will push boundaries on how digital channels dynamically tailor experiences for individuals. While retail organizations will lead this charge, commercial and institutional financial services will look to upgrade their digital experiences to where retail firms are today.
- Key Takeaway: Firms need to think about what a personalized experience looks like and then develop capabilities and mechanisms to support that. In the next 3-5 years, this will be the difference between the next product or dollar staying within a firm or going elsewhere.
Obviously there is a lot more going on in financial services, but these are the areas that seem to have a ton of momentum this year.
Any thoughts and feedback welcome…