Going digital technology: Two speeds for growth market banks

banking digital technology

In America, banks are investing more in digital technology because of rising competition and flat economic growth. They want to improve efficiency, enhance the user experience and create new business opportunities.

Many banks are reluctant to invest in large-scale digital transformations of their businesses. They see large-scale, digital technology transformation as disruptive and costly for their services and operations. They are trailing other brave competitors, who are further along in the digital transformation process.

There are two speeds to digital transformation for banks that are hesitant.

This strategy allows institutions the ability to transform their businesses in stages. They can achieve performance and cost milestones and minimize disruption to core business functions.

These results can be very dramatic. The efficiency of our clients’ businesses has seen dramatic improvements. Clients have seen significant improvements in the efficiency of their business by developing closer relationships with customers and launching innovative products and services. Fukuoka Financial Group in Japan, for example, launched a digital cloud-based bank as part of digital transformation. Minna Bank was the name of the bank and it had 400 000 customers in its first year. It currently has two million customers and is on track for more by 2024.


Two-speed digital transformation splits the process in two parts. It involves the bank’s traditional business being overhauled and the creation of a separate digital platform. The “Supertanker Approach”, while the “Speedboat Approach”, is the second. The second is the “Supertanker Approach”.


The Supertanker Approach to digital technology

The Supertanker Approach is the bank’s primary business. It is a large ship that moves on a steady course. It begins by migrating paper-based solutions to a digital environment. To improve business efficiency, it uses data analytics and artificial Intelligence. The company then launches digital products or services. This transformation is based on the integration between human expertise and digital front-end and back-end solutions. A “Digital-Human-Digital” philosophy can enable banks to improve efficiency by automating their customer service and operations while enhancing the user experience their staff deliver to customers. One of our clients reduced the time to open an account by six mins and its back-office workload by 70%.

Speedboat Approach

The second aspect of digital transformation is speed, much like a speedboat. Banks must develop digital products and services that are attractive and delight customers quickly. These offerings are less expensive than traditional banking products. These offerings are also easier to support. Minna Bank of FFG has an IT budget that is around three times as large as traditional banks. The headcount of Minna Bank of FFG can drop to as low as 96%.

Combining Speedboat and Supertanker allows banks in growth markets to take advantage of new revenue opportunities that digital technologies offer while also reorganizing existing banking activities.

Banks that want to accelerate their digital transformation can not start from scratch. Both Speedboat and the Supertanker approach have a variety of commercial “building blocks”. These include core banking apps that support digital solutions as well as platform-independent tools for testing which allow rapid rollouts of mobile banking products.

For more information about my two-speed digital transform approach, please contact me here Christopher Jaggard, my colleague, will be my next blogger. Together we’ll discuss global growth and the future of commercial banking.