Digital Evolution with Chris Miller

Hey, GonzoBankers. Tony DeSanctis back with another hot take.

We’ve talked a lot about digital transformation, but we want to have a conversation about digital evolution. I’ve asked Chris Miller, who leads our digital practice, to join us because we feel like digital transformation feels finite.

So, Chris, tell us about digital evolution versus digital transformation.

Yeah, so the notion a couple years ago, I’d say maybe even back in 2019, people started getting digital transformation on executives’ top of mind. Like, we need to get this done.

The problem is people viewed transformation as a one-and-done scenario, right? This is not a one-and-done environment. It’s a constant evolution.

One of the things we talk about with our clients is, we’re going to help you with a roadmap for the next three to five years, but I want you looking at this every quarter. Things are going to change.

Constant innovation is happening in the fintech space. It’s for sure becoming harder to keep up with things. But one of the biggest things I can say is, it is an evolution. You need to keep changing with the times, finding new ways to connect with your customers and members.

The biggest thing I could also say is get buy-in and support from the whole organization, right? Because they all need to come along for the journey. Not one person is dictating it, but it’s a collective effort from the organization to come along for the journey.

Yeah. And I think the other thing that’s important is just the evolutionary nature, because if you think about it as just a technology rip-and-replace sort of solution, you’re not even framing your digital strategy correctly.

You really want it to be from the consumer or member perspective as the way you drive that, right?

Right. And then also, when you say the rip and replace, it’s not often a rip-and-replace need. There’s an underutilization of a system, through no fault of one single person. But over the years, we’ve let the system go by the wayside.

So we work with clients to help optimize what they’re currently using, whether it’s Alkami, Q2, Lumin, Apiture, you name the provider, right? We’re working with them diligently to help them better utilize the system because it doesn’t always come down to a replacement.

Yeah. So a lot of times it’s not the technology, it’s the strategy and the execution and making sure you’ve got the right strategy in place.

But occasionally, right, and there’s a lot going on in the space. The one place I think where our financial institution clients have a benefit and advantage is the number of vendors in this space for digital is probably more robust than in any other area of banking.

That’s not necessarily a bad thing and gives you certainly some more flexibility and options.

Yeah. Something that keeps me up a little bit, there are over 90 solutions in the marketplace that are digital solutions now. Some of them are sold by a core solution that you can only get with that core.

Sure.

We track probably the top 35 that are in flight today that could actually be viable for a bank or credit union should they want to switch.

And that includes account opening, digital solutions, as well as the existing account side of things.

And that’s a whole other ecosystem that we have to add into it.

Yeah. But yes.

So really, I think the big takeaway here is, don’t just assume that a technology switch is going to address all your digital needs and then you’re done.

One hundred percent.

I think even Ron, in his What’s Going On in Banking study, has changed the question to add the option of, “It’s never going to be done,” right?

Right. Digital transformation is a journey, and it’s a long-term strategy.

One hundred percent.

Well, listen, tell us what you’re doing. What does your digital evolution look like? Are you doing it from the customer- or member-first perspective and thinking about what the customers and members are looking for, and then building the technology around it?

Or are you literally just assuming that a technology shift is going to put you in the right space because you’ve moved vendors?

Let us know in the comments what you’re doing, and if you have any questions, we’ll see you next time.