Banking Digital Transformation: How to Avoid Failure
A common reason for banking digital transformation projects to fail is the accumulation of detail-level issues. Experienced personnel and thorough planning are key to success, according to Siili Solutions.
Many banking digital transformation projects fail despite careful planning. Siili Solutions identifies the primary cause as the accumulation of detail-level problems, leading to delays and cost overruns.
Successful projects are often driven by experienced, open-minded individuals with a deep understanding of both legacy systems and business operations. A person who bridges IT and business acumen, adept at building new processes around solutions, is a particularly valuable asset.
A critical factor for success is also shifting focus to back-office systems. Many off-the-shelf solutions are designed for specific environments, and adapting them elsewhere can be challenging, especially if requirements are dictated by old routines. Modifying back-end logic is often expensive but necessary.
Siili Solutions emphasizes the importance of a thorough Proof of Concept (PoC) phase. Just as testing new medicines is responsible, starting large projects without a PoC is risky. A carefully designed PoC, integrated into the RFP process, helps identify potential shortcomings and significantly increases the likelihood of project success.
The company advises focusing less on replicating user interfaces and more on developing back-office systems. Prepare for change, as not all challenges can be anticipated. Identifying an internal IT expert is a crucial long-term investment.