# How should banks approach our new reality? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-04-15 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: COVID-19 Impact on Banks: Digital Transformation Strategies Meta Description: By David Donovan, EVP of Financial Services Publicis Sapient. Discover how banks can enhance operational efficiency and customer experience by embracing URL: https://financedigest.com/how-should-banks-approach-our-new-realityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd140918-10-1736838926690-compressed.jpg) _By **David Donovan,** EVP of Financial Services Publicis Sapient_ Prior to a few weeks ago, our ways of working fell into two categories: work that can be done remotely using tech, and collaborative “agile” work which is done using cross-functional teams, often co-located or via in-person meetings. There is a spectrum of how we do work, from pure knowledge, highly tech-enabled, to pure collaborative, highly co-located. COVID-19 has [forced a situation which has shown us how we can push ourselves further toward the collaborative side of the spectrum using technology](https://www.financedigest.com/mldw-technology-market-size-share-top-leading-companies-consumption-drivers-trends-forces-analysis-revenue-challenges-and-global-forecast-2028.html "MLDW Technology Market: Size, Share, Top Leading Companies, Consumption, Drivers, Trends, Forces Analysis, Revenue, Challenges And Global Forecast 2028"). While the majority of [banks were already beginning to move in the direction of digital](https://www.financedigest.com/key-considerations-for-building-an-inclusive-digital-banking-experience-fit-for-the-future.html "Key considerations for building an inclusive Digital Banking Experience fit for the Future"), institutions that have made investments in technology are generally experiencing less disruption from COVID-19 than their competitors that had not made headway on the digital shift yet. For many [banks the collaborative](https://www.financedigest.com/why-open-banking-heralds-a-new-era-of-ecommerce-merchant-and-bank-collaboration.html "Why Open Banking Heralds a New Era of eCommerce Merchant and Bank Collaboration") “agile” work is harder. Only 17 percent of banks had a sound [digital strategy](https://www.financedigest.com/minding-the-gap-the-importance-of-inclusive-financial-strategies-as-digital-currencies-rise.html "Minding The Gap: The importance of inclusive financial strategies as digital currencies rise ") in place before March, which means the majority of banks have now had to shift rapidly, or attempt to, in order to meet their customers’ needs; all of this while experimenting with tools and capabilities that enable their internal teams to work without being co-located. This [crisis has exposed cracks in the banking](https://www.financedigest.com/how-can-open-banking-help-smbs-navigate-the-cost-of-living-crisis.html "How can Open Banking help SMBs navigate the cost-of-living crisis? ") system that is a result of too much dependence on legacy technology. This has been problematic for many banks as they try to keep up with demand from their customers, particularly as the SBA PPP loan [offering has come out this past](https://www.financedigest.com/online-brokerage-robinhood-jumps-29-to-surge-past-offer-price.html "Online brokerage Robinhood jumps 29% to surge past offer price") week. The banks that still have legacy mainframe back-end systems cannot onboard new customers and complete KYC and [AML checks](https://www.financedigest.com/aml-and-identity-checks-lessons-learned-from-the-natwest-case.html "AML and identity checks: Lessons learned from the NatWest case .") in an effective and fast way. According to new research from SRM, 82 percent of [banks rated](https://www.financedigest.com/swiss-national-bank-raises-rates-says-bank-crisis-stopped.html "Swiss National Bank raises rates, says bank crisis stopped") their online and mobile channels as “vital” to operations during the pandemic. While we’ve already been seeing branch footprints experience a multi-year downtrend, the response to COVID-19 has seen extensive closures that will [continue to quickly accelerate the move to digital](https://www.financedigest.com/the-fintech-digital-revolution-will-continue-in-2022.html "The Fintech Digital Revolution Will Continue in 2022"). What have banks already been doing, and should continue to do for their customers? - 79 percent of banks have provided information on how to utilize their remote channels in an effort to educate consumers unfamiliar or uncomfortable with [digital](https://www.financedigest.com/gamers-spend-twice-as-long-viewing-intrinsic-in-game-ads-compared-to-other-digital-channels-reveals-new-research-from-lumen-and-anzu.html "Gamers Spend Twice As Long Viewing Intrinsic In-Game Ads Compared To Other Digital Channels, Reveals New Research From Lumen and Anzu") channels. - They have waived fees and deferred payments - Beefed up their [cyber security](https://www.financedigest.com/transport-operator-go-ahead-flags-cyber-security-breach.html "Transport operator Go-Ahead flags cyber security breach") to address fraud that becomes extremely prevalent in times of high economic anxiety. [Banks have taken to warning customers of phishing attacks via text message and e-mail where fraudsters are looking to take advantage of potential](https://www.financedigest.com/embedded-finance-is-the-new-norm-in-banking-but-what-is-needed-to-unleash-its-full-potential.html "Embedded finance is the new ‘norm’ in banking, but what is needed to unleash its full potential? ") check recipients. - [Banks need](https://www.financedigest.com/what-banks-need-to-prepare-for-eba-pillar3-disclosure-of-esg-risks.html "What Banks Need to Prepare for EBA Pillar3 Disclosure of ESG Risks") to be involved in government guaranteed loans, and help to find a solution to increase participation in the program, while also creating scale for people that need loans. In this new reality, what can [banks do to improve business performance using digital transformation](https://www.financedigest.com/how-to-fulfil-the-digital-transformation-requirement-in-banking.html "How to fulfil the Digital Transformation Requirement in Banking")? **Operational efficiency and [customer experience:](https://www.financedigest.com/getting-customer-experience-right-in-financial-services.html "Getting customer experience right in financial services")** Look critically at how to transform customer journeys to provide consumers with the right combination of high-tech and high-touch experience, while at the same time optimizing the cost/level of live engagement that is required from front-to-back business operations. **Effective and efficiency collaborative work:Redefine what [work means](https://www.financedigest.com/redefining-what-it-means-to-have-it-all-how-to-make-work-fit-into-your-life.html "Redefining What It Means to Have It All: How to Make Work Fit into Your Life") and how to collaborate within their organizations. Optimize interactions, meeting costs and travel costs to [drive more profitability](https://www.financedigest.com/philips-to-cut-13-of-jobs-in-safety-and-profitability-drive.html "Philips to cut 13% of jobs in safety and profitability drive") within their enterprises, while increasing collaboration to drive the top line.** **Preparedness for an infrastructure to deal with crises:** Understand what it takes to continue functioning when disruption happens in an era of global travel, connectivity, [fraud and threats](https://www.financedigest.com/battling-the-evolving-fraud-threat-the-role-of-the-credit-team.html "Battling the evolving fraud threat: The role of the credit team"). Create the [data sharing](https://www.financedigest.com/how-data-sharing-can-give-brands-confidence.html "How data sharing can give brands confidence") and analytics infrastructure required to understand and deal with the cause of the disruption. Implement the infrastructure required to [support customers](https://www.financedigest.com/why-now-is-the-time-for-banks-to-use-their-data-to-support-customers.html "Why now is the time for banks to use their data to support customers") and operate with colleagues throughout the crisis and beyond. While we know that work doesn’t need to be face-to-face, collaborative technology [platforms enable](https://www.financedigest.com/matchly-the-us-fintech-platform-that-enables-employees-to-access-their-401k-employer-match-raises-1-7m-in-pre-seed-round.html "Matchly, the US fintech platform that enables employees to access their 401(k) employer match, raises .7m in Pre-Seed Round") us to get collaborative work done. We have all been shoved into becoming comfortable with [remote work](https://www.financedigest.com/digital-insurance-and-the-remote-working-and-studying-boom.html "Digital insurance and the remote working and studying boom") and for many banks this requires a deeper investment in tech infrastructure. Coming out of this experience, all [companies should have one big](https://www.financedigest.com/big-companies-manage-to-pass-on-soaring-costs-to-cash-strapped-consumers.html "Big companies manage to pass on soaring costs to cash-strapped consumers") take-away – be prepared for anything. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---