Successful Digital Transformation in Banking Depends on Value

Introduction

• Many digital products appear successful but may not last (e.g., Kodak, Nokia, Blockbuster).
• Current disruptors: Amazon Pay, Apple Cards, Facebook Libra.
• Financial companies must adapt to market changes and focus on customer value to survive.

Understanding Business Challenges

• Companies often blame competitors, employees, or customers for declining performance.
• Real success comes from diagnosing internal issues with products/services.
• Adapt products to meet world needs, not vice versa.

Digital Transformation Survival Kit

Key Questions

• How does a financial product add value?
• What do users want and how can it be delivered?

Four Tactics for Value-Based Products

1. Reverse Engineering

   • 70% of digital transformations fail due to wrong focus (product vs. user experience).
   • Focus on user experience transformation.
   • Use "Financial UX Design" methodology for success.
   • Start with defining user value, then action plan.

2. User-Centricity

   • The motivation to help customers ensures long-term success.
   • Constantly gather user feedback and adapt products accordingly.
   • User dissatisfaction should trigger product updates.

3. Authenticity

   • Avoid template solutions; deliver unique, emotional experiences.
   • Empathize with users and learn from competition.
   • Define "Why" for the product's existence.

4. Flexibility

   • Abandon obsolete practices; stay agile.
   • Focus on user needs and market changes.
   • True professionals prioritize solving customer problems over ego.

Disruption in Banking

• Historical lessons from Nokia vs. Apple.
• Many banks focus on legacy and miss opportunities.
• Digital transformation should enhance user experience.
• The choice: Disrupt or be disrupted.

Conclusion

• Transforming user experience is key to successful digital transformation.
• User-centered design is now essential, not optional.
• Contact for more insights on financial UX design.

Resources

• Various links provided for further reading on UX design, user-centered approaches, and the impact of legacy in banking.