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Digital is not all Mobile and Online Banking

I interact with several 'experts' in digital banking. These 'experts' are introduced as strategy leaders. In conversation with them the talk is all mobility and online banking. In presentations, it is more mobility and online. Often I have  seen these 'experts' demonstrate a shallow understanding of the business of banking. Sadly they are in the cusp of confusion of digital technical and digital functional without bridging the gap of knowledge in banking.. 

The business value of digital banking is digitisation of a complete end to end process cycle. For example in retail lending from origination to servicing to closure (to simplyfy the process). This implies automation and straight through processing. A good example here is  a third party credit check while originating a loan. Now this process step (origination) can be accomplished on a mobility device or on online banking.  This ofcourse can be an assisted activity (assisted by a bank sales person) or self service (customer navigates her way through).

What about mobile payments? This is not truly digital. This is extending banking services best understood as  'Financial Inclusion'.

I am waiting for the day when the 'experts' stop dramatically flashing a tab or a pad to underline digital banking while on a podium. These devices are mere enablers. The real stuff is in articulating the business value using the devices.  

 

 

 

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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