The Challenges of Digitalization: A Marathon, not a Sprint

Digitalization is transforming businesses at an unprecedented pace, and the financial industry is no exception. While it offers numerous benefits, there are significant challenges that institutions must navigate to stay competitive. In this article, we explore these challenges and provide insights on how financial institutions can adapt their strategies for a digital world.

Digitalization is rapidly transforming businesses across all sectors, with the financial industry being no exception. As technology continues to advance at an unprecedented pace, financial institutions are being forced to adapt to an increasingly digital world. While digitalization has numerous benefits, it also poses significant challenges that institutions must navigate if they hope to stay competitive.

 In this series of articles, we will explore the various challenges associated with digitalization and provide insights into how financial institutions can adapt their strategy to these new challenges and ensure that they will be ready for an ever-changing landscape.

From looking at rentability holistically to transforming organizational structures and cultures, we will cover a wide range of topics designed to help institutions successfully navigate the complexities of digitalization. By exploring these challenges in depth, we hope to provide valuable insights and advice that will enable financial institutions to thrive in an increasingly digital landscape.

In this first article will look at how digitalization is more a question of endurance and long-term view rather than a function of speed.

Digitalization is often seen as a race against time, with businesses striving to adopt new technologies and stay ahead of the competition. However, while speed may be important, it is not the only factor that determines success in the digital age. In fact, digitalization is more akin to a long-distance race than a sprint, where endurance and long-term thinking are essential for success.

In the recent year I have been faced with a lot of clients wanting to move to digital services as quickly as possible. For Exempla in Africa many institutions are alarmed at losing their clientele to the mobile provider which provides highly successful digital financial services. While this is a valid concern, rushing into digital solutions without taking the time to look how those services fits your clients and your organization can have detrimental impact on the long term.

Digital transformation is not solely about speed; endurance and long-term thinking are crucial for success in the digital age. Rushing into digital solutions without considering clients and organizational fit can have detrimental long-term effects.

To truly succeed in the digital age, businesses must take a more strategic approach. This means thinking beyond the immediate benefits of digitalization and considering the long-term impact on their organization. One of the key benefits of taking a long-term approach to digitalization is that it allows businesses to build a solid foundation for future growth. By investing in a comprehensive digital strategy, businesses can create a scalable platform that can adapt to changing market conditions and customer needs. They can also ensure that their systems are built to last, with the flexibility and agility to evolve over time.

Taking a slower and more methodical approach to digitalization can allow an organization to change its structure in a more effective manner. With a focus on endurance and long-term growth, companies have the opportunity to take the time to analyze and adjust their current processes and systems to better align with their digital goals. This can involve restructuring teams, developing new roles and responsibilities, and implementing new protocols to support the integration of digital tools and processes. By taking the time to properly align the organizational structure with the digital strategy, companies can create a more cohesive and effective approach to digitalization.

In conclusion, digitalization is not just a matter of speed, but also of endurance and long-term focus. While it may be tempting to rush into implementing new technologies and processes, taking a more thoughtful and methodical approach can ultimately lead to greater success. By carefully considering the needs of the organization and taking the time to properly align the digital strategy with the overall business objectives, companies can build a strong foundation for sustainable growth and innovation. The key is to remain committed to the long-term vision, while remaining flexible and adaptable to changes in the digital landscape. In future article we will go more in depth regarding the different digital products and how to construct this long-term strategy.

Author: Christophe Bretagnolle