Day 1 Digital Transformation in Banking

 In Banks, Digital Transformation

Our team here at Liveoak Technologies is closely listening to the challenges that our customers and prospects are facing. We have found that meeting customer demand for digital access is one of the primary challenges in banking today.  However, the complexity of existing legacy systems, compliance and security make change difficult.

A growing trend within our own client base and prospective customers is what we are calling “Day 1 Digital Transformation.”

Often times, the process of digital transformation is so overwhelming that change does not occur in a timely manner. All energy is spent on problem-solving and planning for future transformation. With internal demands for resources and differing opinions, the process can extend out longer than originally planned. For larger banking enterprises, once a general consensus has been reached, the process of contracting with a new technology partner (procurement), stress testing their infrastructure and ensuring security is a very lengthy process in itself.

Ultimately the goal of digital transformation is to attract, expand and retain long-term relationships with banking customers. To meet customer demand, banking enterprises must differentiate themselves by creating convenience and exceptional customer experiences.

One of the recurring themes that we hear from the consumer banking side is that banks are increasingly looking for technology that will enable automation in their customer interactions. Meaning, a digitized, self-serve model. On the SMB and commercial banking side, banks are looking for ways to use technology to provide personalized assistance and convenience to customers.

Although we are seeing different goals within the consumer and business banking channels, there is a common theme. High-value customer relationships and transactions require personal assistance. The same is true when an application is too complicated and/or there are multiple steps in the process – self-service workflows are not effective. Customers need to be guided through the process by a human expert.

The concept of Day 1 Digital Transformation focuses on what can be done today without disruption to existing systems and workflows. This concept is similar to the crawl, walk, run concept in that most do not come out of the chute running. We crawl and walk first and digital transformation can be viewed the same way.

So how is Day 1 Digital Transformation being practiced today in banking?

Banks are partnering with technology providers that can implement solutions that run in parallel to their legacy systems vs. technology that requires custom integration (and legacy system upgrades).

An example of this in action – banks are offering their VIP customers a white glove experience for remote banking activities. Banking representatives use web conferencing technology that works directly through a browser such as Liveoak’s Virtual Interactions platform™  to remotely guide customers through the process of completing forms, uploading documentation (including photo I.D.) and signing paperwork.  Because the technology works directly through a web browser, integration with the bank’s legacy system is not required and customers do not need to download software to gain access. This VIP experience resonates very well with SMB, commercial and high-value consumer bank accounts.

Digital or eSignature can be a sticking point for some banking organizations because they still require a wet signature on some of their forms, documents, signature cards etc.  The wet signature requirement often creates an inconvenience for customers (both consumer and business) because it requires them to physically visit a branch to complete a process or transaction.  One solution that works well for remote customers is to use Liveoak’s Virtual Interactions™ platform as described above and when it is time to sign, the customer uploads a photo of their wet signature via their mobile device. This method of uploading a photo of the wet signature often times satisfies the bank’s requirements for an original signature.  This is a great example of “Day 1 Digital Transformation.” This is a solution that will provide technology and convenience to customers today while planning for tomorrow and beyond.

When working with technology that operates at the browser level, often times questions about security arise. In the case of Liveoak, bank-grade security covers every session as well as a System-of-Audit™ that creates a complete record of every action and keystroke taken by all participants inside each session.

Using technology in this way helps to develop a more intimate, premium service for the bank’s most important customers, ultimately delivering higher financial returns and increased loyalty as well as unleashing the potential of real-time communications.

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