5 stages of the Digital Bank framework
1. Digital Reinvention starts off:
Digital strategy is based on a bank’s specific vision and mission, the competitive context, and target business model with methods such as Digital Reinvention for Digital Bank framework
2. Digital capabilities assessment:
Digital capabilities assessment is driven by the digital strategy. Identify the business and IT capabilities that the bank should develop and deploy to support a new digital business model. Using a DBF, a bank assesses its current digital maturity to help define the overall set of capabilities and compares it with the bank’s digital ambition to identify any gaps. The DBF links key financial performance indicators to the digital transformation, recommending projects to close the gaps
3. Target operating model alignment:
Target operating model alignment is based on the DBF operating impact model. This step defines changes required to support the desired digital maturity. Organization, processes, culture, assets, technology, and architecture are all affected by the digitization process and should be transformed to support a bank’s digital ambition.
4. IT architecture alignment:
IT architecture alignment is a crucial element in the transformation of the operating model transformation, and the evolution of the bank’s business and IT architecture. The digitization process requires deep changes both in traditional systems of engagement and in its systems of records. This new generation of front- and back-office systems should be built on data, analytics, and artificial intelligence (AI) to make informed automated decisions, and convey data, events, and services throughout the enterprise.
5. Digital Reinvention roadmap:
Once the digital strategy, operating model, and target architecture are defined, and the bank’s budget plan, resources, and risk appetite are considered, all changes are orchestrated into a transformation program. Projects and timelines can be oriented to close capability gaps that are supported in financial models showing the required costs, resources, risks, and expected returns.