By Eric Disend, Partner

What can banks do to improve their competitive position in today’s evolving financial services marketplace? To begin with, they should address these priorities related to strategy, people, technology and data.

1. Start with the customer
   In setting digital strategy, it’s essential to start from the customer’s viewpoint and experience and work back to the bank. This is a departure from the traditional approach of starting with siloed banking channels, working out to the customer and trying to figure out how to unify the channels.Customer segmentation is a core consideration in setting strategy. This involves looking at the distinct experiences of customers and prospects as well as differing expectations among various customer groups.
2. Change the internal culture
   A major hurdle many banks face internally in implementing digital channels is political. The people managing branches, sales and transactions may see digital channels as a threat (when, in fact, digital is simply another channel that complements traditional channels).To overcome this misconception, senior management can create and champion a culture in which customer experience is the focus. Establishing a “chief customer experience officer” role can be a key step in overcoming organizational barriers to channel integration.
3. Deploy needed technology
   First-generation digital banking applications are nearing the end of life and in need of refreshing. Providing a seamless customer experience will require redesign, reconfiguration and upgrading of bank IT from the customer interface to back-end systems.Banks will need to decide how much to rely on internal systems vs. service providers. Technology providers are approaching banks’ needs in one of two ways, either a) offering a flexible user interface (UI) that banks can customize to an extent for look and feel, or b) ceding ownership of the full UI to the bank, which brings it in house and manages it.
4. Make the most of customer data
   Banks may overlook valuable customer data sources in the day-to-day rush to keep the institution running and keep up with competitors. As they rely on focus groups, usability labs and one-on-one interviews to gather information on customer needs and attitudes, they may be underutilizing online analytics to track consumer behaviors and understand trends. That’s a missed opportunity, as key insights from such data can provide the foundation for testing new products, services and marketing programs.

Positioning for the future
Rising customer expectations, coupled with growing competition from traditional and nontraditional rivals, are compelling banks to consider how they can create a seamless, flexible customer experience both within the branch and in the digital world. By building strategy based on the customer’s point of view, rallying people and resources around the strategy, and making necessary upgrades in technology deployment and data usage, banks can strengthen their position in what promises to be a demanding, competitive industry future.

What other changes can banks make to improve their competitive position in today’s evolving financial services marketplace?

Eric Disend is a Partner and leader of the new Capco Digital group