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Why Banks Need A Digital Transformation Now More Than Ever

by | Oct 27, 2020

Covid-19 has unquestionably transformed a wide array of business processes as organizations adapt to remote workers, new policies, and the uncertain timeline of the virus. For many organizations, Covid-19 has ignited a fast-track movement towards digital transformation and jump started automation journeys.

In late April of this year, with COVID-19 still in the infancy stages of its reach, Microsoft CEO Satya Nadella stated, “As Covid-19 impacts every aspect of our work and life, we have seen two years’ worth of digital transformation in two months. From remote teamwork and learning to sales and customer service to critical cloud infrastructure and security, we are working alongside customers every day to help them stay open for business in a world of remote everything.”

Two years worth of digital transformation in two months! Companies that don’t put digital transformation on the top of their priority list are playing a dangerous game of wait and see. More than six months after Nadella’s statement, there is still reliable method to gauge the lifecycle of this virus, forcing many organizations to march swiftly towards digital transformation solutions that can keep business operations afloat until the virus subsides.


Banks – Pioneering Digital Transformations During a Pandemic

While Covid-19 has resulted in decreased business for many organizations, there are a number of sectors that are more backlogged than ever and have less resources to alleviate their workflow. Notably, banks have been forced to pivot and to expedite any digital transformation solutions that were in the pipeline to accommodate a rapidly growing demand for services.

With refinancing surging due to record-low interest rates, unprecedented amounts of PPP loan applications, and increased investment portfolio activity–the list of interactions with customers banks must manage has grown exponentially.

Additionally, the cessation of LIBOR scheduled to occur at the end of 2021, and the Bank of England has confirmed that this deadline will not be pushed back due to Covid-19.

In February of 2020, the Financial Conduct Authority (FCA) crafted a letter aimed at CEOs to prepare them for the cessation of LIBOR. Within the letter, the FCA requests that all firms “ensure all (their) operational processes are prepared for the transition to alternative rates,” while also stating that they “expect you to understand how your operations might be vulnerable to LIBOR cessation, and to take appropriate steps to protect your clients, your firm and the markets.”

According to the letter, this transition must take place as soon as possible. Within the letter, the FCA also states, “If your firm has LIBOR exposures or dependencies, your transition activities should be now underway. If LIBOR transition is not yet underway at your firm, we expect you to take immediate action to develop and to begin to execute an appropriate plan.”

Considering the influx of customer requests and interactions flooding banks, the LIBOR transition is an additional hurdle banks must clear in spite of a reduced and/or remote workforce. This has created a clear and present need for an automated data platform that integrates compliance to accommodate the dissolution of Libor.

With the rising number of document-intensive processes banks encounter, the traditional paper-based processing methods are pitfalls for operational efficiency. Banks who were ahead of schedule in their digital transformation process are already reaping the operational benefits, while those who were behind are digging themselves out of a mountain of backlogged documents.


How Western Integrated Systems Can Help

If you are behind schedule on your digital transformation journey, don’t hesitate any longer. Contact Western today to learn about our partner’s digital transformation solutions that could revolutionize your operations future-proof your organization for the next unforeseen obstacle.

We will walk you through each step by analyzing your business processes and tailor a solution that will lead to improved operational efficiency.

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Written by WIS



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