While the banking industry leads other industries in the adoption of some practices and technologies, digital transformation is not one of them. So, let’s take a look at 4 things financial institutions can learn from other industries in regard to digital transformation:
- Adopt the first principles of engineering – made famous by Tesla (and later by Facebook under the mantra “move fast and break things”), this concept is slowly being adopted by financial institutions. The idea is to take a new concept and try to implement it using whatever technologies seem most promising, with the expectation that it will fail initially. This failure, however, provides valuable experience and insight that can be leveraged on the next attempt.
- Experiment with different tools and technologies – most tech giants experiment with different tools and technologies prior to settling on one. This allows for a full exploration of the benefits and drawbacks of each, letting the most appropriate one be chosen (as opposed to the most cost effective one or the one that seems theoretically the best fit).
- Don’t forget about the human element – successful digital transformation has a strong human element. While technologies can make processes easier and more seamless for consumers, there need to be processes in place that allow for human interactions to resolve issues when these technologies fail (and they will). This will not only help offset technological issues that arise; it will also help maintain consumer confidence.
- Look to the public sector – in general, the public sector has been faster to learn and adapt than the private sector. This can be seen in the healthcare industry, which is investing heavily in artificial intelligence (AI)-based technologies. There is a lot to learn from this experience, including how to effectively use AI as an advisor in making more sound decisions.