Banking Operational Excellence

According to multiple surveys conducted by leading organizations, almost half of global executives believe that the key challenge they face today is achieving operational excellence, which evolves mainly around changing and improving their company culture and making the leap to technology. As they say, digitization is not only about doing old things faster but about scalable, tech-led smooth operations.

The banking industry has constantly accelerated its boundaries for embracing technology and directing it towards its services. Both developing customer needs, and emerging market opportunities, have led the evolution of the industry towards fulfilling service necessities and expanding new opportunities. As technology has increasingly evolved with the pace of time by reaching beyond its primary purpose of addressing people’s needs, banking has taken hold of its extensions by including it within its operations.

Core traditional banking operations, still present, have been upgraded through technology. Banking operations have made the most of the technology momentum to advance the banking offerings. This trend has become apparent in different dimensions within the range of banking products and services offered these days.

Over the past few years, the shifts made in the following areas have put pressure on bank’s ability to challenge and survive this ever-changing business environment, not to mention the pandemic, which only made business even more complex and challenging:

Banking Operational Excellence
  1. Competition: the non-banks, like Fintech companies and payment processors.
  2. Market conditions: innovation and economic pressure.
  3. Talent training and retention: change in employee’s preferences and career expectations.
  4. Regulatory demands: local and international increased requirements for disclosures, compliance, and standards.
  5. Increasingly demanding clients.

Technology has now become apparent in banking operations through transitioning product traits. Banking Operational Excellence is able to perform a mobile payment with the same easiness of sending a text message (some people consider it even easier!) or opening an account with few clicks while you are resting on your couch, or any other tech-powered services made possible with the huge advancement in technology.

Banking Operational Excellence

Whereas internet banking has expanded the banking experience beyond the physical presence of the branches, it has established new ways in which customers are approaching banking. An engaging experience is essential besides the fundamental need for integrated services accessed through all-in-one solutions. Remote transactions such as utility payments, money transfers, or currency exchange transactions are perceived as standard if the value of an engaging experience is not noticeable. In this regard, both functionality and customer experience are considered banking operational excellence. Operational excellence behind the scenes makes an essential contribution to the quality of customer experience people cannot have one without the other.

The days in which banks served only for keeping people’s money safe and performing trade transactions possible seem distant, while the days in which new emerging products and services are growing seem in the vicinity. Banking Operations Excellence is the threshold every player engaging its activity across it is trying to reach. The effective use of technology is the appropriate element that makes its attempt possible. Solutions like RPA, smart call centers, and AI/Machine Learning-powered Compliance Platforms create new opportunities and make way for new banking reality. It’s time to ask how to eliminate dependence on all low-value, high-volume manual processes, is not just about liberating staff to do real business – it’s about reducing error and the risks that go with it. In my personal opinion, it’s about freeing people’s time to do things that matter.

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Author: Abdelrahman Altayyeb

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