Why Some Businesses Are Not Ready For Digital Transformation

Digital transformation, as the world knows it, is an exciting concept, especially when companies that succeeded without it make the transition into utilizing digital platforms. However, when it comes to integrating new processes in any business, there is going to be a lot of gray area that needs attention and support. 

Any change that’s worth undergoing demands businesses to step out of their comfort zone and embrace it fully.

A great example of this is IKEA which traditionally required customers to visit physical stores to embark on the customer journey. Flash forward to now, with all the IT innovation the company has implemented, it is said that about 80% of customers start their buying experience with IKEA online.

Change in an organization is never an overnight effort and some studies even suggest it takes upwards of 5 years to a decade for significant change to unfold in a business. Obviously, in 2023, this isn’t an amount of time that any company could survive without implementing some form of digital solutions which means that the demand for guidance with IT solutions is beyond significant. 

With that said, the first thing we need to cover is some of the common struggles businesses generally face when beginning their digital transformation journey:

1. The leadership team may not fully understand or support the implications of digital transformation, making it difficult to get the necessary funding or resources for the project.

2. Some businesses may have an outdated IT infrastructure that cannot support their digital transformation goals.

3. Employees may be hesitant to adopt new technologies or processes, or they simply may not have the necessary skills or training.

4. Companies that lack proper data management processes and tools will struggle to handle the vast amount of data that digital transformation requires.

5. Some companies may be hesitant to invest in new technology or processes because they simply don’t have the budget or don’t know how much ROI they will see. 

6. Companies that are not prepared to handle cybersecurity risks may be hesitant to undergo digital transformation.

7. Businesses that lack a clear vision for either what they want to gain from digital transformation or how they will implement it are simply not ready to take it on. 

The common thread in all of these scenarios is the need for proper planning. Companies in any industry can mitigate these risks by simply delving deep into analyzing three things:

• Infrastructure

• Current processes

• Resources

With these aspects clearly identified, the organization can start to develop that vision for its digital transformation. When we talk about the “vision” for digital transformation, we’re talking about the big picture. This change is something that everyone in the organization must be aligned with for it to work. 

When we think about the companies who’ve completely remodelled the idea of how they deliver their service (like that of IKEA), we’re looking at companies who’ve done significant analysis and research of their market and resources at their disposal. With that in mind, now it’s time to go over what needs to be considered during analysis and how the findings will lead to execution.

Plan, Then Do

Analysis: The key inspiration for digital transformation is usually a belief that certain processes aren’t as simplified as they should be. Analyzing everything from the back-end infrastructure to the end of the customer buying journey will help identify the pain points. This analysis should ideally involve collecting and analyzing data on:

• Market trends

• Customer behaviour 

• The organization's operations

Execution: Once the analysis is complete, the next step is to create a roadmap for digital transformation that outlines the specific steps and timelines needed to achieve the vision. This roadmap should include:

• A prioritized list of initiatives and projects

• Required resources

• Potential risks

• Clear metrics and goals to track progress and ensure that the digital transformation is on track (KPIs and benchmarks for each initiative)

This breakdown gives a general sense of the ideal way a company would set itself up during their transformation but it is certainly not set in stone. Every organization has a unique vision and there are going to be points where they need to pivot and re-evaluate their purpose.

The Takeaway

Ultimately the most ROI from digital transformation stems from this aspect of the process, returning to the vision and understanding all the facets of the organization that need to work together. A solid IT infrastructure can only succeed if it’s aligned with the organization's overall business strategy and goals. 

No matter if we’re talking about a start-up, or a fortune 500 business, guidance when integrating IT services is something everyone will benefit from.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

What is Digital-Only Banking and What Does it Mean For Businesses?

The types of changes we’re seeing in financial technology daily are crucial for businesses to pay attention to. New trends in FinTech will influence the changes that occur in businesses of all sizes, especially when it comes to the customer experience. One of the bigger transformations we’ve seen recently is the shift to digital-only banking. Now, let’s be clear that digital-only banking is not limited to sending that E-Transfer to your friends and family.  

The concept of digital banking refers to the use of digital technologies, such as the internet and mobile apps, to access and manage financial services and products. On the other hand, digital-only banking (also known as online banking or internet banking) refers to a type of banking that is solely conducted through digital channels and does not have a location for you to visit.

What’s in it for consumers? 

Customers of a digital-only bank can perform all of their banking activities online or through a mobile app, including checking account balances, paying bills, transferring money, and managing their finances. Banks that are digital-only often offer competitive interest rates and lower fees compared to traditional banks, since they do not have the overhead costs associated with maintaining physical branches.

Some examples of digital-only banks include Ally Bank, Chime, and Capital One 360. These banks offer a range of products and services, including checking and savings accounts, credit cards, and investment options, all of which can be accessed and managed online or through a mobile app.

Risks

We have to keep in mind that while digital-only banking has become increasingly popular in recent years, it is not without its drawbacks. Many customers may prefer the convenience of visiting a branch for in-person service or to deposit physical checks, for example. Additionally, digital-only banks may not offer the same level of customer service or support as traditional banks, and there may be risks associated with conducting these transactions online.

How can they be resolved?

Despite these drawbacks, the shift towards digital-only banking is likely to continue, as more and more consumers become comfortable with using digital technologies to manage their finances. Businesses that can adapt to this trend and offer digital services will be setting themselves up for success long term. But why is that?

Trends

Companies embracing the hottest trends are certain to gain attention from consumers in today's market. In addition to digital-only banking, some of the biggest trends in FinTech include artificial intelligence and machine learning which improve financial services and products, along with the growth of mobile payments and the previous rise of cryptocurrency.

Artificial intelligence and machine learning are consistently being used to analyze financial data and make predictions about market trends, as well as automate tasks such as fraud detection and risk assessment. 

What’s interesting is that mobile payments, which allow consumers to make payments using their smartphones, are becoming more popular as a convenient and secure alternative to traditional methods of payment. Additionally, cryptocurrency, which is an asset that uses cryptography (solving codes) for secure transactions, is another area that gained a significant following in recent years. While cryptocurrency may have lost its glowing reputation, mobile payments are still important to watch for, even with the crypto dip.

The Takeaway

The FinTech industry is constantly evolving and businesses need to be aware of these changes to stay competitive. Digital-only banking, which allows consumers to access and manage their financial services and products through digital channels, is one of the major trends in FinTech. While it offers competitive interest rates and lower fees compared to traditional banks, it may not provide the same level of customer service or support and there may be risks associated with conducting financial transactions online. 

However, the shift towards digital-only banking is likely to continue as more consumers become comfortable with using digital technologies to manage their finances. Businesses need to stay up-to-date on these trends and adapt to them to succeed in the future.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Keys to Digital Marketing as a FinTech Firm

Without marketing, you have no business, no community, and no longevity. FinTech companies face challenges that are unlike most other industries, particularly since the product is relatively new and different. FinTech brands must be as creative in their marketing efforts as they are in creating innovative services. This means financial startups' main areas of concern should be based on educating and building rapport with consumers.

With FinTech companies, educating and connecting with the audience is done through digital marketing that is powerful and digestible. Companies don’t want to intimidate those unfamiliar with their product, so their branding needs to be easy and not “too techy”. For startups in the financial sector, digital marketing can look like a mountain to climb. However, the trip doesn’t have to be so complex with the right strategic solutions. 

After reading this section, you will understand some of the top methods for financial companies when approaching a digital marketing campaign. More importantly, you will understand why these methods are effective in a highly competitive market:

Branding

The main priority for financial companies, especially new ones, is getting the audience in tune with complex concepts. This can be done in several ways, but the common starting point is by understandably framing the product. Beyond that, companies will want to create hype and ultimately FOMO (Fear Of Missing Out) around the product. For example, making investment decisions is based on complex variables. Over 60% of adults are intimidated by investing, a trend that is only becoming more prevalent with each generation. FinTech mobile apps aim to assist those unfamiliar through analytics and AI-generated investment guidance. By using the product, customers will be able to get ahead in planning for their future while being involved in the process. 

In this example, we see that positioning your brand as the latest way to get personalized investment advice based on easy-to-understand data while acknowledging consumers' intimidation generates interest. It should also be noted that honesty in your company messaging is the best way to market, especially as a tech company. One of the top reasons tech companies lose business is hyperbole, which means that transparency in the company's vision and capabilities is crucial.

Branding is not simply a logo, colours, or font that represents the company. This is where some businesses stop and as a result have branding but no brand. True branding is developing emotional attachment behind the materialized elements of your brand. You will buy certain clothing because of how it makes you feel, certain product labels because you trust them, or support businesses that support other causes. In a competitive market, find your niche and use it to be unique (which you’ll see examples of further in).

Digital content marketing

Again, FinTech firms need to educate the audience on what's relevant and upcoming, which is where digital content tools such as videos, blogs, interviews, speakers, etc., are most valuable. No matter what stage your company is at, this will require consistent content that is engaging and informative. The average consumer attention span is 8 seconds which is generous if you observe how people scroll on social media. Essentially, the general rule of thumb with content is the instant hook/incentive which becomes a transaction in itself with the consumer.

No matter what it is, keep it simple. Crypto trading platform Coinbase uses “learn and earn” where users can receive cryptocurrency in exchange for completing lessons and quizzes. This is a perfect example of what content marketing should look like. The goal is to generate leads, conversions, and build awareness of your brand's initiative. If implemented correctly, you’ll find content marketing scalable and great for globally expanding your audience reach. Another good example would be to take a look at FinTech company Current, scroll at least three swipes through their website and you’ll see a great example of generating appeal in today's market. 

Create a mobile experience

This is pivotal to compete in 2022. Remember, FinTechs are up against traditional banking systems and are fully digital which means the best place they can beat them is in a mobile experience. Branding and marketing are great for getting the customer, but retaining that business comes from differentiation. FinTechs who are the most disruptive are the ones who function entirely online (otherwise known as neobanks).

Online banking is continuously growing; in the United States alone, there are over 23 million people who use only online banking services. The uprising of neobanks is enhancing this vision of a fully digitized consumer market. The top neobanks in North America (ranked in order) are Chime, Current, Aspiration, and Varo. While each has its unique features, the number one factor that makes them the best is their mobile experience. 

Get active on social media 

Over 30% of American consumers have at least one FinTech app on their mobile device and spend upwards of 5 hours each day on that device. This screams one thing for digital marketers: OPPORTUNITY. This is prime real estate for advertising in-app, especially for brands that operate solely online or that are trying to make the transition from traditional banking to modern FinTech. 

Specifically, brands want to keep up with current trends and initiatives while zeroing in on their target market. A great example of this is financial company Ellevest whose slogan is “by women, for women”. They tackle the imbalance of women's involvement in investing and offer personal finance coaching along with spending incentives. Ellevest ran a campaign called ‘’invest like a woman” which was aimed at inspiring women to take control of financial responsibilities that are traditionally built for men. 

You can see here that brands that add their touch are the ones who do the best. There is a level of authenticity that makes companies distinguishable, and to connect with the audience and take advantage of that, social media will be the best outlet. 

The takeaway

The online sector is where businesses are finding opportunities for longevity. These opportunities, however, only present themselves with well-thought-out execution. This is especially true for financial institutions since this business is built on trust and understanding. Remember, it’s not that you do it, it’s how you do it, and in the case of marketing, how you present your brand will factor into its lifespan.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.