Thriving in the connected economy necessitates banks and financial institutions to embark on a transformational journey. It’s time to launch a ‘social’ revolution, writes Jeby Cherian
For some time, businesses have been refining and optimizing their networks of suppliers and partners. But something just as meaningful has been happening – the sudden convergence of the digital, social and mobile spheres – connecting customers, employees and partners in new ways to organizations and to each other.
It is interesting to note how the banking CEOs are responding to the complexity of increasingly interconnected organizations, markets, societies and governments.
According to the findings of the IBM Global CEO Study 2012, “Leading Through Connections,” three imperatives are impacting geographies and industries: Empowering employees through values; engaging customers as individuals; and amplifying innovation with partnerships.
CEOs are changing the nature of work by adding a powerful dose of openness, transparency and employee empowerment to the command-and-control ethos that has characterized the modern corporation for more than a century.
The advantages of the fast-moving trend are clear. Companies that outperform their peers are 30% more likely to identify openness as a key influence on their organization. Outperformers are embracing new models of working that tap into the collective intelligence of an organization and its networks to devise new ideas and solutions for increased profitability and growth. CEOs will shift their focus from using e-mail and the phone as primary communication vehicles to using social networks as a new path for direct engagement.
It is significant to note that a related Global Banking study, “From Complexity to Client Centricity,” identified that banks’ performance on social media trails its performance in other channels.
Simultaneously, banks have detected that client demands for service on channels, including social networks, has increased. Over 70% of the 214 participating Financial Services CEOs identified insight from client interaction as the number-one target for investment to build sustainable economic value. Sixty four percent of CEOs point out insights in risk management while 53% round out Operations as their top three investment areas for the future.
In order connect with the client, Financial Services CEOs believe they need to focus on their channels. Over 70% of CEOs expect face-to-face interactions in the branch and nearly 60% expect remote interactions through the web to remain as their top two channels for client interaction both today and tomorrow.
Looking ahead three to five years, 50% of Financial Services CEOs report that social network-based channels are poised to gain ground to become their number three choice, at the expense of contact centers.
Given the data explosion most organizations are facing, CEOs recognize the need for more sophisticated business analytics to mine the data being tracked online, on mobile phones and social media sites. Certainly, a flexible operating model that is built on uniform processes and tightly integrated channels is a critical step in the right direction. And, the building blocks for success lie in gaining insights about client needs, client satisfaction and risk in combination with delivering excellent service across all channels.
The forward looking CEOs are embarking on a new era of leadership as they embrace a more connected culture. It’s time to step out of the Ivory Towers and cruise on to a smarter future…
Jeby Cherian is Vice President & Managing Partner, Global Business Services, IBM India & South Asia.
