Vol. 2 #12
Innovating the bank: Embracing digital transformation to enhance customer experience, streamline operations, and drive growth.
In the high-speed world of banking, there is always the urge to sweep problems under the carpet to depict a picture of perfection. Ignoring the problems, however, may lead to great risks and compliance issues, more particularly in the banking sector.
Anecdote: A core banking project at a medium-sized bank was experiencing many technical issues. The project leads decided to sweep these issues under the carpet in reports to senior management in hopes that they would be ironed out before the final deadline. Unfortunately, all those unresolved issues snowballed, and repeated system outages affected thousands of customers. This was followed by an investigation, and those glossed-over reports were dug up. Inevitably, the loss of credibility and faith in the project team followed.
Antidote: Putting Honest Reporting First
Setting regular reporting intervals and requiring a detailed update on progress and challenges is a good starting point to avoid this trap. Encouraging a culture where the raising of issues is a proactive and positive action ensures that problems are dealt with promptly and effectively.
On the other hand, successful core banking projects are those wherein honest reporting is at the helm and problems are addressed at their onset rather than being swept under the rug. This commitment—like the transparency and proactive problem resolution for long-term success—should be at the top of the list for any core banking transformation.
Found this article interesting? Check out these three related reads for more.
- Corporate Candor: Overcoming groupthink for better decision-making (A New Series)
- Corporate Candor: Avoiding project failure by shifting goals (A New Series)
- Corporate Candor: Hidden failures in polished corporate reports (A New Series)
#CoreBankingTransformation #TransparentReporting
