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Design & Technology February 24, 2015

10 key challenges & opportunities of the Finance Sector

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It is common knowledge that the finance industry is teetering on the cusp of a digital revolution. If finance organisations want to compete and flourish in a competitive market place, digital transformation is an imperative.

There are many challenges and opportunities for the sector when it comes to achieving digital transformation. Here’s our round up of the top ten.

  1. Cost reduction: lowering cost per transaction and increasing sales by cross-selling, up-selling and acquisition.
  2. Customer focus: optimising the customer experience and enhancing customer service in a consistent way – moving from cross-channel and multichannel to omni-channel.
  3. Single customer view: connecting systems and processes to achieve customer experience optimisation, with an increasing role for digital channels and a connected CRM.
  4. Developing new offerings, products and services that are adapted to the evolving customer reality, competitive landscape and area of activities.
  5. Digital and direct banking with a clear role for mobile banking, especially in areas with less branches, high mobile penetration and cost reduction programs.
  6. Segmentation: adaptive and agile business models, taking into account customer segments, based on various parameters.
  7. Branch consolidation and innovation, for both cost reduction purposes and to introduce new cost-effective and customer-adapted ways to digitise specific processes and tasks.
  8. Analytics and ways to combine all interactions: using big data to optimise customer service and digital touch-points, whilst enabling rigorous cost control.
  9. Identifying silos that are omnipresent in virtually all business functions and processes, and finding ways to build cases that enable improved efficiency across these silos.
  10. The use of digital marketing and customer service strategies to acquire, retain and service customers. Adapting to the digital consumer, but also promoting digital services to reduce costs, both in services and marketing spend.

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