Pub. 9 2019 Issue 4

7 ISSUE 4. 2019 to rethink its approach to compliance and risk management. In- novative organizations engage compliance and legal departments in defining new processes from the beginning, often resulting in better overall experiences. 4. Requiring customers to complete the process outside digital Mere digitization combined with legacy compliance can result in reversions to parts of the original process. Requiring customers to move from the digital channel they chose to use to a different one almost always results in a frustrating experience. 5. Pitting the digital channel against the physical channel When banks design a digital process that will compete with an ex- isting one, they must consider and address the project’s attribution at the start. Digital transformation should not be a project for “the digital team.” It should be an effort that cuts across and involves the entire organization. Designing a customer-centered experience should not take a back seat to turf wars. 6. Lacking digital success metrics specific for digital Simply digitizing an existing process often results in relying on metrics applicable to the previous process. But new experiences require new metrics. One of the benefits of digital experiences over physical ones is the ability to capture data throughout the process, and to optimize the experience. 7. Limiting choice in funding Providing prospective customers with a single option for funding is another example of banks not thinking through the user’s experi- ence. Some organizations shy away from a certain type of trans- action for funding, such as funding with a credit card, due to fraud concerns. While understandable, offering a few options should be considered, particularly if they include options to keep the customer within the digital channel. 8. Not allowing for exceptions It is rare that a well-designed process produces only one or two results. In an ideal world, every applicant would easily go through the process and be able to open an account without any issues. Of course, some applicants aren’t a good fit and would select or opt-out. However, there are some unforeseen reasons why people aren’t able to complete a process or are erroneously turned down. The most successful organizations provide tools to help applicants through the process and provide a “second chance” to those who fall out of the process. 9. Ignoring a follow-up process For banks, getting a prospect to open an account fully is only half the battle. Ensuring the new customer starts using the account and thinks of your organization as primary is key. Many organizations have robust follow-up processes for accounts opened through physical channels, but fail to design similar processes for new digital customers. Organizations should apply design thinking to their design of digital experiences. Such methodology puts the client at the center of new experiences, reducing the chance of making these mistakes. w Alex Jimenez is the Chief Strategy Officer at Extractable, a strategic consulting, design, and data analytics agency focused on the future of financial services. Experience includes leading technology strategic planning for the office of the CIO, at Zions Bancorporation, and managing Digital Banking and Payments Strategy and Innovation at Rockland Trust In a prospective relationship, nothing is more important than the initial experience. A growing number of potential customers are engaging with a financial service company for the first time through a digital application process, making the initial experience a microcosm of the failings of legacy financial service companies during their digital transformation.