Page 30 - Banking Finance November 2021

ARTICLE

Net change in channel usage Net change in expected channel Refining the
during the pandemic (%) 1.2 usage after the pandemic (%) 1.4
Retail Bank Value
Streams
Digital channels
A value stream, according
Mobile apps 30 19
to Wikipedia, is the set of
actions that take place to
Online banking 23 16 provide value to a
customer from the first
request to the customer's
(Figure 1: COVID-19 Is Driving Increased Use of Digital Channels) realisation of value.
(Source: BCG Analysis, 2021) Importantly, value stream
analysis helps in
Y Leveraging Remote Work incorporating:
Primarily, banks have to realise how teams work with a focus Y Value-added steps (adds value to the customer of your
on remote and distributed teams. Leave alone banking, even financial product or service),
the traditional companies across industries, have embraced Y Strengthening business value-steps (include bank
remote work to stay connected with customers and regulatory compliance, risk management necessities)
employees. But, having seen the benefits of work from
Y Eradicating non value-added steps (No value to the
home/work from anywhere, people will be hesitant to come
customer, nor are they required in any way)
back to the previous way of working. And the organizations
will have to adapt and leverage a new working model that
In the banking domain, it helps in analyzing the different
does not compromise on the service levels and customer
transactional and operational processes that are currently
experience.
required to deliver value to a customer, from customer on-
Y Pursuing the Fundamentals of Customer boarding to attending service requests. The following is the
Centricity description of the value stream for a retail bank.
With a weak digital offering, it might be the "now or never"
time for the banks. Banks have to be more focused on JOINING Opening a new account to make
serving customers through digital touchpoints. In the transactions, such as paying bills
forthcoming years, traditional banks either keep retaining
existing clients and acquire more through proper digital
touchpoints or face the certainty of being insignificant. More Buying a home/Making a large purchase,
importantly, banks have to speed up the digital BORROWING such as buying a car or a boat
transformation of internal processes and legacy systems that
pursue the fundamentals of customer-centricity.
Understanding real and often unmet customer needs and
GETTING FUNDS Securing a loan
delivering them is core to customer delight and loyalty.
FAST quickly
Y Becoming the "One Step Ahead" Leader
In times that represent disruption and sudden behavioural
change, employees have to learn fast but, leaders need to SAVING Saving for a child's education or
learn faster. For organisations to navigate the troubled for retirement
waters, leaders need to quickly adapt to have a clear vision
of organisational growth and success. Without a doubt, the
majority of banks with sufficient capital will survive the crisis. OPTIMISING Understanding, organizing, or managing
In a post-crisis environment, successful banks will be led by FINANCIAL WELL finances, as well as renegotiating debt
infinite-minded leaders who can adapt and inspire.

30 | 2021 | NOVEMBER | BANKING FINANCE