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Overcoming the Challenges of Digital Transformation

December 13, 2024|0 min read
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For decades, the conversation in financial services has been digital transformation. And, a quick internet search shows a myriad of statistics and case studies about why digital transformations fail. But, according to Dr. Leda Glyptis, the author of Bankers Like Us, we’ve actually been pretty good at adopting new technologies. However, it’s still really hard. 

Technology will continue to evolve and open up a world of opportunities — digital transformation isn’t something that has an end date. So how do we address the challenges of digital transformation? At Money Experience Summit 2024, Dr. Glyptis explained how institutions can overcome the holdups and challenges that are plaguing the industry.

Here are the key takeaways:

Regulations Don’t Have to Be a Hinderance

Over the past year, there has been little conversation about the financial industry and Open Banking without mentioning the latest regulatory rulemaking — Section 1033 of the Dodd-Frank Act. And since its final publication in October, there have been even more conversations surrounding regulation and what’s next.

Feeling stuck when introduced to new regulations and requirements is a common sentiment as it puts pressure on organizations to change their processes. But, regulation actually opens up additional opportunities for organizations to self-reflect and determine what can be made better to the benefit of consumers. As Dr. Glyptis said, “the reality is, in every organization I have worked, regulatory change is actually how we got headspace and budget to innovate.”

Although they may feel limiting at times, regulations require change and change can open up additional opportunities for innovation. Through a shift in mindset, regulations can level the playing field and allow financial institutions to implement strategic initiatives that will better serve the customers. 

AI Needs to Start with Good Processes

Artificial Intelligence (AI) has been the hot topic of digital transformation over the recent years. Industry leaders are caught brainstorming how they can better use AI so they don’t fall behind their competition. And while AI can help improve certain inefficiencies, it is not the fix-all solution that it is made out to be. And it certainly isn’t the first step.

“I care about the hierarchical policy and procedural organizational hangups that will forever make the job an uphill struggle no matter how intelligent you get about AI,” said Dr. Glyptis. Efficiency starts with process and recognizing the slowdowns.

Businesses must start out by auditing their current policies and procedures to determine what bottlenecks they face. There is more power in establishing strategic policies and procedures that can streamline everyday tasks, compared to simply introducing another piece of AI technology for the sake of it.

Rooting Out Inefficiencies

Dr. Glyptis pointed out that when we find ourselves stuck, we should first look inward to find a fix. Too often we get comfortable with the way we do things and fail to realize certain policies we’ve put in place are preventing us from being efficient and innovative.

Although we may recognize a need, completely revamping policies and procedures can be a serious undertaking that we put off until we realize we are behind the times. Dr. Glyptis said, “you actually sort of sidestep a lot of problems because you're not gonna fix everything today.” So we often don’t attempt to fix them today, tomorrow, or next week. And then we find ourselves even deeper into inefficient processes.

“I remember talking to one of my CEOs a few years back, ‘do I need to learn this [new technology]?’ The answer was, ‘well you don't, but the organization does. Because by the time you retire, we’ll be late.’” — Dr. Leda Glyptis

Dr. Glyptis ended with a word of advice on how to fully become unstuck in this age of digital transformation. Financial institutions have the building blocks for success: data, resilience, and governance. Everyone should accept that they have this reach — the ability to make change — no matter where they sit in their organization.

Watch the full session here.

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