What it takes for a financial institution to go digital

 

Hands on a tablet
1. Understand what is digitization

The digital ecosystem is all of the technology, digital providers, software and applications available to you – and it is constantly changing. To stay competitive, you need to know learn what is digitization and opportunities available for your financial institution.

How to stay up-to-date:

  • Join a network of rural banks, microfinance banks, microfinance institutions or cooperatives
  • Partner with a digital provider offering capacity building and workshops
  • Attend conferences that bring managers and leaders of financial institutions together
  • Review the research from microfinance experts: CGAP, IFC or Acción
  • Ask questions and only sign up if and only if you understand all of the details

Man sitting next to his computer
2. Figure out the real costs of your IT system

The price you pay upfront is just one of the many ways your technology is costing your business. From opportunities missed to time lost, there are many hidden costs you need to consider.

Quantify the following:

  • The cost of down-time
  • Losing clients to competitors
  • Prolonged implementation
  • Relying on outdated and errored reports to make decisions
  • Time spent fixing bugs and installing updates
  • Time IT specialists spend traveling to every branch
3. Align your IT and business strategy

Every decision about IT impacts the success of your financial institution. Your growth, client service, access to funding and risk management – all of it is directly influenced by your IT strategy.

Key questions to ask technology providers:

  • How will your technology help us reach our goals?
  • How will your technology overcome our challenges?
  • How will your technology mitigate our risks?

If the technology does not support your business strategy, it is not the right technology for your financial institution?

Interested in learning more about best practice for digitisation?