This article was originally published on CUES.
Fintechs came onto the scene over a decade ago, and ever since digital transformation and optimization have been buzz words in the banking industry. The emphasis on digital transformation picked up speed after the financial crisis of 2008, and then continued through and beyond the pandemic, where digital optimization gained traction – and prioritization.
You might be asking, what’s the difference between digital transformation and optimization?
Glad you asked.
Digital Transformation vs. Digital Optimization
Digital transformation is the first step on the digitization journey and a necessary catalyst. Technology is the driving force of digital transformation. Digital transformation is literally transforming the way traditional banking has been done. It is the digital evolution of traditional banking services.
The next phase is digital optimization. Digital optimization isn’t about being the best and the biggest. It’s about strategically serving your members with digital tools, anticipating their financial needs, and gaining the big picture of your institution to make better decisions. Digital optimization is about taking calculated risks out of comfort zones to enhance your digital tools.
So, what does digital optimization look like?
Digital transformation is fairly black and white - adopt digital tools to complement traditional banking services. Optimizing these tools and the member journey has more layers and many pieces to the puzzle. How your credit union fits the pieces together will... continue reading here.