Who Ate My Cake: The Digital Transformation of Banks in Africa

Title:Who ate my Cake: The Digital Transformation of Nigerian Banks.Author:Oluwaseun OyediranCourse: Customer Experience ManagementProgram:International MBA 2018General Info:This is part of a book i am co-authoring regarding positioning African banks for future growth and competition. This mind map gives a framework of how Banks can fully transform their institutions internally and externally. Internal transformation refers to how the Banks can operate, design their organisations more efficiently, and allocate resources that stimulates growth. Externally involves how they want to position their institutions from a customers' perspectives by looking at the entire customer journey and experiences and create their products and services from that vantage point.

Future of Retail Banking

Transforming Traditional Banks

Executive Summary

The Enemies on the Horizon: FinTech, E-Commerce, Telecoms, Social Networks, Search Engines, Global Banks & Insurance Companies.

The Unforseable African Economy

Income Growth & Inequality

Millenial Population & Digital Usage

Opportunities from Migration

Economic Diversification

The Four Apocalypse of Banking

Disintermediation

Banks are losing access to customers as they switch to non-banking channels and sources.

Unbundling

Banks are having various parts of their services stripped off by competitors, especially in the areas of payments, investments, remittances, loans and savings.

Invisibility

Customers are caring less about banks brands and are now trusting fintechs and e-commerce companies in the areas of financial services.

Commoditisation

Banks need to deepen customer relationships through personalisation and ease of use. Banks products are soon becoming similar to insurance or telecoms where differentiation is harder to accomplish.

New Banking Models

The New Banking Models is where financial services starts to put the customer at the centre (Customer Centricity). The Entire process is to acknowledge all the activities that the customer does in their daily lives and provide banking services to support all these activities rather than just when payments, transfers or collections are involved.Banks can begin to provide an ecosystem of services such as messaging, entertainment, games, learning, that creates a network effects.

Bank-as-a-Service

Advisory & Advertising

E-commerce capabilities

Transaction Fees: In-app purchases

Media & Entertainment

Games

Social Banking

Building New Capabilities

Building new capabilities refers to both talent management and using technology to facilitate work. Employees cannot innovate and be creative except the institution they work for allocate resources in building new capabilities. Designing the organization to work more productively and efficiently would improve employees experience on the job and therefore improve customer experiences also.

Digital Capabilities

Cybersecurity

Big Data & Analytics

A.I. and Robotic Process Automation

Cloud Computing

Revamping IT

Talent Management

Leadership & Execution

Culture & Change Management

Collaboration & Breaking Down Silos

A New Evaluation System

Attracting Tech Talent

All Star Talent Scheme

Linking KPIs to Responsibility

Innovation Strategy

External Strategic Process: 1) Digital & Non-Digital M&A; 2) Open Innovation & Coopetition; 3) Beyond Listening to Markets; 4) Shaping Regulation

Competing with Traditional Banks and Non-Banks.

Organisational Design: Structural & Contextual Ambidexterity

Banking Operating Models

save time

make info

interesting

easier to remember

Designing Experiences & Touch Points

Designing Experiences and Touch PointsWe look at the entire customer journey in order to provide better experiences for the customer and less friction as people move from one platform to another (OMNI-Channel Strategy). Here we look at the four key factors of experiences - Technology, Customization, Human Touch and the Wow Factor.Conclusion:At the end, the customer demands a banking experience that is fully personalised, seamless and affordable. Touch points are useful but the entire customer journey is more important. Banks have to develop new products, services, experiences and market that is totally different from what they offer today in order to growth their market. They cannot continue to do business as usual. They have to innovate in order to meet the increasing demands of tomorrows customers.

Banking Relationship Channels

Cardless ATM Channels: Cheque & Cash Deposit, Remittances & FX Transactions.

Digital Banking

Robo-advisory in Wealth Management

Mobile Banking

Banking in Social Networks: The WeChat Model

Self-Service Branch of the Future

Onboarding Process

Fully Digital Onboarding

The Deloitte Banking Onboarding Process