Digital is no longer a desire. It’s an imperative to keep pace and reduce risk.
The level of impact from the COVID-19 crisis is yet to be fully recognized, but as with other pivotal points in history, we are starting to see fundamental changes to the fabric of our society—and especially the workplace. Just like new security protocols at airports after 9/11, or the required SEC filings to protect the consumer after the Great Depression, COVID-19 will change the way all businesses operate.
This is especially true for the banking industry, where COVID-19’s disruption has made modern banking technology to retain and engage customers an imperative. The disruption also highlighted opportunities for digitization and automation in operations. For example, a new SBA report shows that banks processed over 4.5 million Paycheck Protection Program (PPP) loans in only a few months - volumes that cannot be efficiently handled without automation.
It’s a safe bet that current changes to operations will continue well beyond the end of the pandemic, and banks will focus even more energy on “going digital” across all their functions. But carrying out digital transformation now and into the future comes with its own set of challenges for regional banks.
4 Digital Transformation Challenges for Regional Banks
- Knowing where to start. What is the vision for your digital strategy?
- Having the right talent. What talent do we need, and how do we recruit and partner with companies to acquire it?
- Investing in the right technology. Which technologies will provide the highest ROI?
- Implementing the strategy. How can we ensure success in implementation and create a culture that embraces the change needed?
While the COVID-19 pandemic demonstrated the need for banks to adopt new digital ways of business, digital transformation was already well established on the industry’s radar. The pandemic simply moved digital transformation from priority to critical status for regional banks. Despite challenges like finding the right technology, talent, and partners, strategic moves like the ones detailed in our Strategies for Regional Banks to Go Digital white paper can help regional banks accelerate their digital transformation journeys.
If you would like to learn about the five key moves for improving digital competency in your bank, download the white paper.