Home Стратегия Retail banking in CEE 2015

Retail banking in CEE 2015

Digitalization of Back Office Activities

The emergence of digital technologies brings new capabilities to businesses and allows them to address their clients faster, better, and precisely coping with their individualism. Some financial institutions master the embedding of these new technologies very well, however for the majority of the banks it means a difficult task with numerous challenges.

Категория: Метки: ,


New business opportunities and challenges lie in the capabilities offered by the technology. From offering and value proposition viewpoints, digitalization could be a tremendous differentiating factor. On the other hand, changes at the front end of the bank result in significant changes in the back office – Usually the head-ache of the Head of Operation.

Objectives and reasons for back-office digitalization

Back office digitalization has two main facets: improvement of the client experience, and automation of processes. Surely these are interconnected, but there is one key difference: in what way the starting point and the objectives are derived. While client experience-oriented banks focus on improving client proximity, the process automation approach is more of an internal view on digitalization (e.g. doing things faster and better).

The three main reasons why banks digitalize their back-office are to improve the response time, enhance the client experience and increase the data quality. Interestingly, there are some differences depending on the size of the bank to be observed. Small banks are more focused on efficiency improvement, while large banks are more driven by the improvement of risk management.