Pub. 2 2021 Issue 1

www.cbak.com 8 In Touch Developing a Digital Banking Strategy to Serve Customers and Mitigate Risk BY STEVE KENT, CSI O ver the last several years, our world has been leaning further into the digital realm, largely thanks to a younger, more tech-dependent generation. To stay competitive, community banks must digitize and develop strategies for digital-first customers. Though many institutions re-directed customers to online, mobile and call center channels in response to COVID-19, that tactical pivot — though important — is not a digital banking strategy. Smaller institutions have various reasons for not fully digitizing, including fear of compliance or operational risk repercussions. Not long ago, those excuses seemed valid. Today, however, they embody community banks’ greatest risk. Customers Embrace Digital Banking Online and mobile banking use has grown over the last few years, and the pandemic is accelerating its adoption even more. Consumers and businesses previously hesitant to rely on digital channels are now enjoying the convenience, speed, and safety they afford. With consumers fully on board and larger banks already operating in a digital-first mode, community banks have no choice but to adapt or risk being left behind. Here are the three big-picture essentials for a true digital banking strategy: 1. Top-down digital mindset: Digital transformation starts with the institution’s leadership embracing the idea of enterprise- wide digitization and investing in the human and technical resources needed to serve customers through digital means. A s s o c i a t e M e m b e r