In our view, banks should build their

customer experience initiatives through

digital activities to differentiate their
business in the market and reap the benefits
of this evolving consumer age. Socially
engaged banking can help improve crossselling,
brand value and the customer
experience
while positioning banks for
the market shift towards the age of cocreation ,
where consumers help develop the
personalised products and services they want
and for which they are willing to pay
a premium.
Although new features and functionalities
help banks meet customer needs, without
a deep transformational adjustment, banks
may fall short in their bid to deliver the digital
experience that today s consumers seek.
To overcome IT challenges and create a
digital banking programme that has the
potential to contribute significant revenue
growth, leadership should make a strong,
upfront commitment to a wide-ranging
transformational shift. This includes
operating model adjustments, cultural
and skills alignment, and technology
simplification.
Simplifying the bank s architecture and
platforms can enable better functionality and
improved experience across digital channels.
These improvements can spur innovation,
as well as boost revenue and efficiency
through channel ubiquity (a surge in digital
banking channels such as mobile kiosks and
social media). They can also free the bank to
improvise on revenue models (such as social
media-based gift cards and payments) and
reduce the costs associated with disjointed
legacy platforms.

The globalization of the economy and the liberalization of the trade markets hav
e
formulated new conditions in the market place which are characterized by instabi
lity and
intensive competition in the business environment. Competition is continuously
increasing with respect to price, quality and selection, service and promptness
of delivery.
Removal of barriers, international cooperation, technological innovations cause
competition to intensify. All these changes impose the need for organizational
transformation, where the entire processes, organization climate and organizatio
n
structure are changed. Hammer and Champy provide the following definitions:
Since information systems are designed to provide the information
needed to support desired work practices, they are often used for training and l

earning. As
shown by an expert system and a decision simulator, they sometimes provide new a
nd
unique training methods.
IBM developed an expert system for fixing computer disk drives. The expert syste
m was
an organized collection of the best knowledge about fixing these disk drives, an
d it
fostered rapid and efficient training. Before the system was developed, technici
ans
typically took between 1 and 16 months to become certified, but with the expert
system,
training time dropped 3 to 5 months.
One common way to improve data processing is to
eliminate unnecessary paper. Although paper is familiar and convenient for many
purposes, it has major disadvantages. It is bulky, difficult to move from place
to place,
and extremely difficult to use for analysing large amounts of data. Storing data
in
computerized form takes much less physical space and destroys fewer forests, but
that is
only the beginning. It makes data easier to analyze, easier to copy or transmit,
and easier
to display in a flexible format. Compare paper telephone bills with computerized
bills for
a large company. The paper bills identify calls but are virtually impossible to
analyze for
patterns of inefficient or excessive usage