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Why Financial Institutions Must Build Long-Term Digital Strategies Now






It is time for financial institutions to begin the process of developing long-term strategies for success, while still understanding the need to adjust to market conditions in an instant. Banks and credit unions must reassess all digital initiatives required to compete with fintech and big tech players, knowing that being a fast follower is a failed strategy.


The banking industry is beginning to emerge from the COVID pandemic, allowing banks and credit unions to focus on changed consumer expectations and an evolving competitive landscape. While there may be a tendency to wait for a mythical ‘new normal’, or continue with short-term thinking, banking executives must build long-term strategies for the future in a post-crisis world.


Major questions to be considered include an assessment of how legacy back-office technologies can be upgraded, how processes and procedures built for physical delivery can be updated for a digital business model, what the future of work will look like, how to create a culture that is more supportive of innovation, and how money can be made. These questions (and others) must be part of boardroom discussions and strategic planning sessions today and going forward.


It is imperative that financial institutions learn from the COVID crisis, and come out of the pandemic aware of past deficiencies and ready to completely reimagine their business model for the future. It is the time to look beyond short-term quarterly results, reimagining what is possible with a universal focus on speed of digital transformation as opposed to being a fast follower.


COVID-19 has provided a view of the future, where digital transactions and engagement are the new benchmark for success. The new business model goes far beyond simply new apps, requiring a rethinking of how products, services and engagements can be accomplished in seconds as opposed to minutes.


Article by Jim Marous, Co-Publisher of The Financial Brand, Owner/CEO of the Digital Banking Report and host of the Banking Transformed podcast. The original article has been taken from The Financial Brand, please see the original copy below:


https://thefinancialbrand.com/103595/long-term-strategy-banking-success-trends/

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