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Defining the digital banking innovation maturity model: A comprehensive maturity assessment for the digital banking innovation framework
Journal of Digital Banking,
7
(1),
46-61
(2022)
Abstract
COVID-19 has driven a paradigm shift, where banks have started digitising their entire life cycle operations, including front, middle and back office, either by modernising the legacy or by integrating with the new-age Technology wrappers and involving various innovations such as artificial intelligence (AI)–machine learning (ML), robotic process automation (RPA), data analytics, internet of things (IOT), augmented reality (AR)–virtual reality (VR), Blockchain, open banking and many more such tech themes. This paper suggests the way maturity can be assessed for a comprehensive digital transformation and innovation adoption programme. As the entire global banking world lacks a universal model of defining maturity, this newly defined ‘digital banking innovation maturity’ acts as a guide to a ‘comprehensive maturity assessment’. This assessment methodology is a blend of multiple perspectives such as (a) unique innovative themes created by the bank, (b) level of adoption of the best innovations and transformation suiting the business needs of banks, (c) The business value achieved from such adoptions based on any existing structured process of tracking the efforts. Four major parameters of this assessment include 1. digital banking innovation capabilities, 2. digital banking proliferation, 3. efforts to create a digital roadmap and 4. level of tracking the business value derived from investments in terms of their return on investment (ROI). This ‘digital banking innovation maturity model’ helps to introspect on such efforts and investment. The model can also help to define a process within the organisation for smooth functioning of such large transformation programmes. In addition, it gives an assurance to top management to research, adopt, experiment and proliferate to achieve the best value or outcome from each such investment. This assessment can help banks and financial institutions to create a good brand perception across the globe while striving for the highest maturity.
Keywords: digital banking innovation; comprehensive maturity assessment; banking industry benchmark; digital banking innovation roadmap; digital banking innovation assessment; innovation ROI; 5-level maturity assessment for digital banking assessment
The full article is available to subscribers to the journal.
Author's Biography
Shripad Ramakant Vaidya is Fellow Chartered Accountant from the Institute of CA of India (ICAI). In a career spanning more than 30 years in industry, Mr Vaidya has founded a consulting company, called Digital Innovations Consulting, and has previously worked with Oracle Corporation as Consulting Practice Director in their banking unit, at Tata Consultancy Services Ltd as Global Banking Lead, at Polaris Software as Head of Global Retail Banking, and at Hexaware Technologies as Global Head of Banking Domain and Competency. He is a bestseller of a course at Udemy — ‘A Course in Innovations of Digital Banking — a global view’, which is subscribed to by more than 5000 subscribers across more than 100 countries. He has also authored various white papers, research papers and articles in magazines including American Banker. He served as a panel judge for a USA-based magazine called Global Finance Magazine in a contest in which more than 200 banks across 100-plus countries competed for selection as the ‘best internet banks’. Mr Vaidya is a qualified independent director, as certified by the Indian Institute of Corporate Affairs. He is a visiting faculty at various management and commerce colleges. He has also consulted with a host of banks for their digital banking initiatives
