Banks Need to be 'Human-First' in Digital Transformation Keeping up with the competition and keeping an eye out on the latest tech are important, but the 'tech' in question is redundant if it is not intuitive.
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We have all heard the buzzwords: digital transformation, digital banking, digital onboarding, you name it. Recently, I came across an industry report which discussed how 52% of financial institutions list enhancing digital experiences as their top priority. Amidst the rush to go digital, we rarely ask whether these enhancements actually serve the customer.
Today, you may not see too many people walk into a bank. About 77% of consumers prefer to manage their bank accounts through a mobile app or computer, unless you're withdrawing or depositing large amounts of cash, which again is not a common sight as countries like the UAE are embracing a cashless economy. The standard today is to have an easy, personalised and instant banking experience, without the constraints of traditional banking. I'd like to describe it as a 'digital by design' model.
But the same digital-first approach has at times caused customers to encounter poor digital experiences, whether during onboarding or other moments of the user journey. On the flip side, the demand for smoother, friction-less experiences has never been higher, and this is partly accelerated by fintech innovators who are already offering simplified and faster digital onboarding and user journeys. To address this, banks today must pursue meaningful digital transformation that puts the customer at the heart of everything. Here are a few ways in which this can be achieved, from adopting a human-centred design approach to leveraging partnerships and contributing to national strategies that enable the creation of safe, people-first digital experiences.
Reframing digital transformation through a human lens
To really transform and at the same time exceed customer expectations, there must be a strong focus on human-centred design. In order words, embracing digital in a human way. Keeping up with the competition and keeping an eye out on the latest tech are important, but the 'tech' in question is redundant if it is not intuitive. Every interaction must be intuitive for the customer!
Currently, according to a 2024 research study based on insights of 2,000+ executives from financial firms and corporations, more than 50% of C-suite leaders are utilising technologies such as chatbots, personalised user experience, personalised marketing and customer segmentation tools to elevate customer experiences.
While this is all great, to truly attract customers, one must think differently. Targeted, continual, and marginal improvements are critical to delivering experiences that surprise the customer when they log in. Their excitement about a new feature and the value it brings to the customer journey is what makes digitalisation truly personalised.
Before rolling out a new capability or digitalising a traditional one, it's important to think backwards. Many banks typically spend time discussing new or revamped capabilities, conducting deep dives into available technologies, and then selecting what feels most appealing, or relying on guesswork about what might seem innovative to the customer. While banks may have insights into what customers need, it's often the customers themselves who have a clearer view of the gaps and what needs to be addressed. So, start the digitalisation journey by listening to your customers, jointly coming up with the ideal customer experience, and then work backwards to determine which technologies are best suited to deliver it.
The role of partnerships in driving customer-centric digital banking
To drive effective digitalisation, partnerships with like-minded entities who share your vision to integrate 'human' into 'digital transformation' are important. For instance, CBD's partnership with J.P. Morgan to integrate the Kinexys Liink application, Confirm, is a powerful step in reducing friction in cross-border payments and reinforcing customer trust through secure, real-time account validation. In another collaboration, we worked with VISA in 2024 to offer innovative and customer-centric solutions to CBD cardholders across all segments. A fundamental part of this agreement was establishing a Centre of Excellence powered by Visa Consulting and Analytics (VCA), dedicated to accelerating and simplifying customer's payment experiences.
Forming such meaningful partnerships will enable banks to drive impact-led digital transformation that strengthens the customer experience.
Making digital transformation reliable and credible
In the race to be digital-first, we must not lose sight of being human-first, nor does it come by downplaying genuine customer connections. Every decision, every upgrade, every partnership must be rooted in the question: Does this genuinely serve the customer? Because at the end of the day, it's not the feature-rich app or the most advanced AI tool that earns loyalty, but how intuitively, securely and meaningfully we serve our customers.
