Navigating digital transformation: insights into the DACH banking sector

Embracing humanizing digital banking platforms

In today's fiercely competitive business landscape, grasping the evolving needs of customers is paramount for financial institutions. Whether they are nimble digital disruptors vying to shake up the industry or established banks aiming to exceed customer expectations, understanding and meeting these needs are crucial for success.

The Banking Disruption Index highlights that more than one-third of respondents said they were looking for human communication delivered in person or on the phone. One in five demanded personalization.

Customers will continue to seek out that essential human connection in their banking experiences. Humanized banking platforms offer a seamless blend of personalization throughout the customer journey, automating routine tasks while ensuring that knowledgeable staff are on hand to address complex queries and provide guidance on important financial products like mortgages.

These services can be seamlessly accessed across various channels, allowing customers the convenience of banking anytime, anywhere. By implementing such platforms, banks can swiftly introduce new features, leveraging pre-built capabilities to drive innovation without added complexity.

Personalized service, local expertise, and a commitment to supporting their community's financial needs and growth provide foundations for success. Focusing on agility and the delivery of tailored banking solutions that cater to the unique needs of their clients will be advantageous for all players. Regardless of size and market position, the key priority across the DACH banking sector is likely to be digital transformation. 

By combining the power of humanized banking technology with the capabilities traditionally associated with branch banking, incumbents and challengers will be well-placed to compete in a changing market.

Overcoming the banking technology skills gap

Competition is high in the DACH region, Germany, Austria and Switzerland are all suffering from a skills gap, labor shortage, and lack of access to developers. Banks across the DACH region face a major challenge in recruiting the staff they need to deliver ambitious digital strategies. This talent shortage is part of what Gartner has termed a “triple squeeze”, with the problems caused by a lack of skilled staff amplified by inflation and supply chain issues. 

Without local talent, institutions have had to recruit from other countries and regions. The lack of developers has even pushed some German banks to open English-speaking departments, adding more complexity to business operations. 

Digital banking solutions empower banking teams to effortlessly streamline operations as well as oversee users and workflows, allowing staff to concentrate on accomplishing strategic objectives. Utilizing low-code tools, business users can automate processes and optimize workflows, ultimately enhancing the customer experience and increasing operational efficiency. 

Read the full report to read more on digital solutions that can help your financial institution gain a competitive edge in the DACH market.