Agile banking uses innovation to lead operations in order to become faster and to target customers efficiently.
Let’s face it, change is happening rapidly in the financial services world, especially with digital transformation on the rise. It is crucial for banks to acquire agile banking tools.
A bank that is agile has the ability to create an increase of customer service at a fast pace while providing top notch business to existing customers because it is backed up by new products that increase product development.
“Hence, agility helps a bank to streamline its process such that it can roll out newer products at a rapid pace to increase the quality of customer experience, and thereby retain existing customers and attract new ones.” Infosys reports.
Agile banking goes hand in hand with the concept of business agility. Business agility is referred to as an organization possessing capabilities, like new software, to respond to change externally and internally quickly.
“The agile bank can grow market share and reduce operational costs in exciting new ways. Discover a new retail banking distribution and marketing model for the digital era—an environment where customers have more control than ever.” Accenture reports.
Let’s discuss the different types of ways banks can become agile.
When a bank maintains range agility it simply means that the organization can increase or decrease its own capabilities. This can mean changing the structure of its own employees.
Range agility allows a bank to change its operations on demand, in order to keep up with the constant flux of different processes.
For example, a bank can change its structure by incorporating social media into its services, which will change the employee’s roles in the company.
Time agility works in a similar way, except it targets the needs of customers. This concept allows a bank to roll out new services at any time in order to successfully engage in its customer’s expectations
“For a bank to be time agile, the processes and systems that underlie operations should be capable of handling the frequent changes in the bank’s offerings. The use of state-of-the-art banking solutions will enable the bank to turn around newer products quickly and manage diverse products and services as time progresses.” Ifosys reports.
So, How Does A Bank Become Agile?
The process of a bank becoming agile will need to incorporate a variety of services. First, it is important for the bank to establish why becoming agile is important. What is moving the bank toward this shift? Is it to acquire new customers? To stay ahead of the competition?
Whatever the reason is, whether it is internal or external, finding out what the “change driver” is, provides a crucial first step to becoming agile.
Once this is clear, it should be communicated to stakeholders and all internal members within the bank.
After understanding what is driving the change, then the proper steps to carry out the developments. For example, if the bank feels as if they are losing customers from lack of up to date technology, then operations can be implemented in order to establish new tech tools, like a mobile app.
These decisions need to be strategic and involve all members of management. This way, the change can be effective and communicated properly.
Benefits Of Agile Banking
When a bank becomes agile, it becomes transformed in order to possess capabilities that can stand up to the on the go, always changing customer and rapid competition.
Agile banking increases positive decision making because it provides innovation, that leverages existing opportunities but creates new ones as well.
“Agile banking aims at providing a full-fledged solution for an identified problem rather than a quick fix. It guides the banks towards innovation to leverage existing resources instead of having a blanket solution to hire an extra workforce to complete the task.” Triplepundit reports.
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