There has been increased spending on information technology (IT) in financial institutions, and that growth is going toward digital transformation. According to EY’s 2018 Global Banking Outlook, 59% of banks anticipate an increase in their IT expenditure of over 10% within the next 12 months. Furthermore, 85% of banks mention adopting a digital transformation program as a major business objective.

The term “digital transformation” refers to fixing traditional issues with contemporary technologies. When it is done correctly, all of the relevant parties, including employees, managers, consumers, and shareholders, benefit.

The 3C Model is one method that can use to investigate the effects of digital transformation. The Japanese organisational theorist Kenichi Ohmae is credited with developing the 3C Model, which is a framework for a corporate strategy that focuses on three variables that contribute to success: the company, the customers, and the competition.

The Company

What are the implications of the digital revolution for your business? Some examples are increased productivity, cultural shifts, and workflow automation in the business.

Because of technological advancements, businesses can function more effectively. WeSignature, online electronic signature service and Salesforce AppExchange partner, helps businesses save money by cutting down on paper usage (including printing, faxing, scanning, and overnight delivery).

Customer UBS Wealth Management saved an estimated 51,000 person-hours a year by cutting the average processing time of its five most frequently used forms from 11 days to 13 minutes.

In addition, digital pioneers have an easier time attracting top talent, bringing them on quickly, and keeping them around for the long haul.

Providing a simple, flexible user experience is a competitive advantage for us, says Lisa Colangelo, senior vice president of retail at Coast Capital Savings Credit Union, the largest credit union in Canada by members.

Boosting teamwork through the use of productivity software, document signing softwares can boost morale and productivity. It’s not a big surprise that companies with highly engaged workforces have 147% higher earnings per share than their competitors.

Read: What Is Webtoon XYZ?

The Customers

What kind of effect do you anticipate digital distribution having on your clientele? Customer satisfaction (CSAT), average order value (AOV), and customer retention (CAC) are all metrics that should be able to be directly tied to IT investments.

Calculate the potential return on investment vs. the added cost through market research, internal assumptions, and vendor customer surveys.

Because of competition from Fintechs and other nontraditional companies like Amazon, traditional banks have shifted their focus to customer-centric business models in recent years.

Better customer service helps banks attract new customers, boost the number of products each family uses, and keep the ones they already have.

Based on the data from the table below, we can see that an increase of just one point in customer experience scores can increase banking revenue per customer by $8-10 annually, proving the direct relationship between customer experience scores and improved top-line revenue found by Forrester Research.

The Competitors

Finally, how are rivals using digital technology to break new ground, and what is the danger in putting off equivalent investments? With the help of digital transformation, your business can gain market share at the expense of rivals and prevent revenue loss due to employee turnover.

Today’s artificial intelligence (AI) technologies may assess the likelihood of a client churning and proactively assign a service representative to make contact to salvage the business.

The most valuable software project partners can provide light on emerging trends, address key issues raised by executives, and develop a cutting-edge product roadmap for a certain sector.

The digital revolution’s effects can be analysed and evaluated through various perspectives. The “B2B Elements of Value” analysis by Bain & Company, a management consultancy, is another framework to think about in addition to the “3 P’s” of people, processes, and products.

For example, e signature for financial services is a platform for preparing, signing, acting on and managing your agreements. It streamline processes and deliver an amazing customer experience–all while maintaining security and compliance.

Remember that a successful digital transformation calls for more than just new hardware and software to run on. It also necessitates a commitment to managing cultural shifts, an aptitude for learning as you go, and top-down support.

The budgeting and planning cycles, as well as other times during the year, should all make use of the guidelines laid out here.

Successful digital transformation requires more than just new hardware and software; it also requires a commitment to managing cultural shifts, an aptitude for learning, and top-down support. 

For this reason, the role of a digital transformation consultant cannot be neglected. The budgeting and planning cycles, as well as other times throughout the year, should all factor in the importance of a consultant to ensure success, and their guidance should be utilized to maximize the potential of the transformation. 

Furthermore, this should be accompanied by consistent, top-down support to ensure that the transformation is successful.