Orchestrating Digital Change From The Frontlines Of Banking

Orchestrating a successful digital transformation can often feel like you’re a tightrope performer. The higher up you are on the rope, the more challenging it becomes, trying to balance the multiple responsibilities you have, all whilst ensuring that the culture of your organisation and employee satisfaction remains at an all-time high. For executives, it can feel like a thankless task. 

Digital change comes with extra layers of responsibility within financial services, particularly banking. 

The current state of transformation within banking

Digital transformation looks different for every industry, depending on how long ago (or how recently) digital practices started to be adopted. 

“For banking, the change has been nothing short of an evolution. The industry has shifted from being digitally resistant and paper-based to fiercely competitive in a digitally disruptive market. However, compared to other industries, banks, and financial institutions have not been at the front of this shift.” - g2

Banks have had to adapt quickly to a market that has largely been driven by online shopping, payment plan providers, and adopting APIs for smoother integration. The strategy required for banking is complex and can often take a lot of time, mostly due to the levels of security that must be achieved when dealing with customer data, and more importantly - their money. 

Digital banking platforms such as Monzo and Starling Bank have led the way, putting simplicity and user experience at their forefront without sacrificing the security and great banking options that their customers require. Their ability to adapt and provide impeccable customer service forced other banks (which had been around for far longer) to quickly adapt to keep up with the modern banks of today. 

From the outside, it can look like a level playing field, as most banks offer the same amenities and user experience. However, there are continuous changes happening under the hood of banking, and leaders must keep their finger on the pulse to move with the change, rather than get lost in it. 

“While banking hasn’t changed at its core, how the industry works with customers has. New players like fintechs and neobanks are offering personalized experiences so customers feel more in control of their finances than ever before.” - g2

Banking, through transformation, has become more accessible and customer-focused than ever before. This change externally has undoubtedly shaken up how banks internally must now operate and embrace change.

So, how can leaders orchestrate digital change while preserving the core values of their businesses in banking?

First, accept that there will be a culture shift

A big part of digital transformation/change is acceptance. Seeing your culture as something that is a living, breathing thing instead of something static allows you to relinquish control over stopping a culture shift. Culture change isn’t always bad, either. Some organisations that go through significant change often need a shake-up, not just operationally, but culturally, too. 

Of course, there can be scenarios where a culture shift can cause too much disruption within an organisation, causing more harm than good. But, on the whole, orchestrating digital change is going to affect every corner of your organisation, it’s as simple as that.

Instead of resisting culture shifts, it’s important to welcome the changes with open arms. Keep an eye on how the culture change is affecting employees as well as business performance, and don’t be alarmed if culture shifts result in individuals leaving - as this is a huge part of the change process.

Instead, be prepared. Look at your succession planning efforts, continuously look for talent, and speak openly and honestly about the culture shifts within the organisation instead of brushing them under the carpet.

Use your values to make decisions, but don’t let them dictate or stand in the way of change

Unlike culture, the values of an organisation tend to stay true for as long as that business is active. However, there are some organisations that take the time to revisit their values if they are encroaching on how the business can perform.

Too often, values, particularly within smaller organisations are conjured from a set of ideas, for example: we want to be like this so let’s make it a value because it sounds good. However, when that value is broken down into digestible chunks for the rest of the business, it doesn’t necessarily marry up.

If you truly intend to be a values-led business, you need to pick values that you understand, can believe in, and will also have the flexibility and capacity for change. A great way to do this is by explaining your values in depth and how they actually contribute to business success.

When looking at banking specifically, the whole industry has undergone a huge culture shift. 

Accenture produced a compelling article on this, stating “In the wake of the COVID-19 pandemic, we’ve seen a broad shift in worker preferences for employers that offer more collaboration, flexibility and purpose, and less hierarchy, bureaucracy and formality. Few banks today check all of these boxes.”. What does this have to do with value creation? Well, the banking industry isn’t known for being values-driven, instead, it’s been more about results - and the aforementioned bureaucracy as a driving force. However, in the new-world of banking, this is being challenged. 

Let’s look at Monzo as a great example:

“We're focused on solving problems, rather than selling financial products. We want to make the world a better place and change people's lives through Monzo.”

This statement alone shows the evolution of banking as we know it!

So, your values creation process should have meaning, it should be explained, and it should allow for change - rather than hindering it. 

Equip your teams with the right training and development tools

Finally, training and development when orchestrating change in an industry that is notoriously “playing catch-up” is crucial. Take inspiration from other industries that have sat at the forefront of change (FinTech, AI, Life Sciences) and see what has worked for them.

“Most banks need to invest more in learning and development programs, and encourage employees to take advantage of them to help employees keep up with the demands of the marketplace.” - Accenture

Whether it’s training and development that can be rolled out internally, or entrusting external consultancies or organisations to support your digital change efforts. Prioritising your people won’t just allow for a smoother change process, but it’ll boost your retention and employee satisfaction, too.

The banking industry is an exciting place to be. In fact, its infancy is what makes it so interesting. Seeing how much the industry has evolved in the last decade alone from a change perspective has demonstrated the potential that there is for future growth.