In order to take full advantage of their digital transformation, banks also need to transform
 their operational models. Avaloq’s Managing Director Benelux – Frédéric Kemp – comments on why optimizing operational capabilities will further enhance the client journey and customer experience  – By Sébastien Lambotte pour l’édition ITnation Mag Juillet 2016

Long organized in silo-ed transactional factories, banks have tried to impose a culture of digitization and more of 
a start-up attitude as they are looking 
to morph into, act and think like 
Fintech entrepreneurships. But to reap the benefits of the front-end digital transformation and deliver enhanced client experience, they are still to create more efficient factories across their back-office functions and adopt more efficient and standardized ways of working. To drive revenue generating opportunities based on enhanced measurement of every product and every margin, banks need a single, enterprise wide view of each customer’s preferences through data analytics capability and a complete front-to-back view of each client.

“Our deployed and BPO clients are reaping the benefits of a highly industrialized, conveniently parameterizable and integrated banking application that covers all processes”, says Frédéric Kemp. “Today reinventing the operating model is about providing strategic business value and not just about lowering costs. Integration of all processes provides greater insight, enhances economies of scale, and increases quality, efficiency and security.”

Reinventing the operating model is about providing strategic business value and not just about lowering costs.

Looking to provide a tailor-made client-experience to customers, “banks are re-aligning their business. People, processes and product architecture as well
 as technology are being redesigned with the client-focused digital business in mind. Differentiation is being achieved in the front- end, whilst products and services tend to be simplified. Case management technologies are also enabling automation of targeted client propositions, product catering which in turn drive associated fees. Furthermore, building on its Software Exchange, Avaloq seamlessly integrates third-party Fintechs capabilities in its front-end proposition”.

In their “Accenture High Performance. Delivered. Banking on Digital –
2015” issue, Accenture confirms this vision, highlighting the need for “a continuous cycle of planning, target-setting, experimenting with or optimizing the digital programs and tracking their outcomes. That process reveals the needs and value drivers of the digital customer, the products and capabilities that banks require, and the pricing models that make most sense”.

Tomorrow’s bank is fully focused on performance and trustworthiness – on the trust vested to it by its clients and on the trust it vests in its service partners. Avaloq, through its deployed solutions or BPO merges the indispensable industrialization with the exibility needed on the front, supporting banks in becoming leaner and more attractive to their end-customers.