Experience-led transformational programs in the banking, financial services, and insurance (BFSI) industry are multi-dimensional plays.
They involve diverse stakeholders in a complex regulatory environment. While there are existing key performance indicators (KPIs), processes, tools, and frameworks that achieve this, most of them are focused on assessing technology-led transformation. Given the highly competitive nature of the BFSI industry, there is a need to look at how businesses can successfully transform themselves from an overall experience standpoint.
We intend to measure all experience-related aspects objectively and provide a prescriptive approach to institutionalizing it into a systematic process regimen. The combination of empirical KPIs and process regimens will address the risks involved in a complex ecosystem of varied stakeholders’ needs.
Moving towards ExperienceOps
The BFSI industry is at the cusp of witnessing a significant shift towards experience-led transformation.
This change involves completely revamping how systems are used. While the industry has been doing well with technology-led upgrades, an overall experience-led transformation is still very challenging for most BFSI organizations.
An experience-led transformation refers to holistically looking at business outcomes from an experience standpoint brought about by underlying process, technology, and designs aspects. To illustrate, to measure the success of an agency system transformation, one would have to look at how it has improved the overall experience from the perspective of the agent, underwriter, call service representative, and the operations team. This is not possible today.
The BFSI industry faces two major challenges when companies try to embark on an experience-led transformation – an ecosystem of diverse stakeholders involved in any product launch and a highly regulated business domain.
In the former, many parties are involved in a product launch – agents, partners, customers, and marketing in the case of insurance, relationship managers, partners, customers, and investment agents in the case of banking and financial services.
The latter challenge above focuses more on the need to be compliant with varied regulations such as the American Disability Act (ADA), General Data Protection Regulation (GDPR), International Financial Reporting Standards (IFRS), and Markets in Financial Instruments Directive (MiFID) to name a few. Hence, there’s a need for an all-encompassing approach to tackle different regulatory requirements. The future, as we perceive, will involve a process regimen to measure these two challenges objectively and align them with budget, time, and environmental implications.
To successfully implement an experience-led transformation, we recommend a design-thinking paradigm. It provides a firm visibility into the perspectives of the stakeholders and users for whom it is intended. This leads us to three important questions:
Is it practical to implement such a concept without compromising on existing techniques within an optimal budget?
Understanding the context deeper
In the insurance industry, agents rely heavily on paper-based correspondence, which is beset with delays in reaching the intended stakeholders.
Addressing this issue through technology only will not be enough to achieve the transformation experience needs of all the parties involved. At times, the agents’ interests may be overlooked. Also, the needs of the insurance carrier (increase in net written premium) and customer (increase in net promoter score or NPS) must be considered. Organizations must approach this such that they account for these needs holistically (see Figure 1).
Figure 1: Holistic approach accounting for all stakeholder needs
However, there must be an empirical measure of various experience parameters combined with a process regimen that encompasses them. This goes beyond the traditional understanding of user experience. The solution in this case is two-fold:
A potential model
Typically, experience measurement is subjective and depends upon the stakeholder(s) involved.
To objectively measure overall experience, we present a potential model called ExperienceOps.
Experience quotient in measurement techniques
The first step is to quantitatively measure experiences. Such a quantitative assessment will pave the way for more tools, techniques, and automation. Measuring experience encompasses looking at the finished product or application from the perspectives of all stakeholders. Below is a series of nine quotients, which make up the overall experience quotient:
The needs of each quotient above varies across the banking, financial services, and insurance domains (see Table 1).
Table 1: Domain-specific quotients
ExperienceOps as part of a regular process
Based on the set of quotients, the next step is to establish a framework with tools, techniques, and defined processes to capture and update these quotients at various points in the product or application life cycle (see Figure 2).
Figure 2: The ExperienceOps framework
To embed these quotients in an organization, there should be a cultural shift towards viewing them from an experience standpoint. This means changing an organization’s governance structure to ensure a smooth transition.
The BFSI industry will soon look for and implement projects from a holistic experience-led approach.
This will become pivotal in differentiating products and services in the BFSI marketplace. ExperienceOps, with its diverse experience quotients, toolsets, and processes, provides a future-looking framework. Adopting ExperienceOps can go a long way in managing key BFSI experience facets – end customers, internal, or external financial intermediaries, and the ever-changing regulatory and compliance needs.
A cloud makeover for the debt collections space will bode well for all stakeholders.
The pandemic has proven to be an inflection point for collections, underscoring the need for a business-driven transformation approach. Success in the collections space will depend on banks’ ability to quickly adopt a robust cloud framework with the flexibility to seamlessly connect with legacy applications, a well-executed cloud roadmap, right skills and talent aligned with the risk strategy, risk analytics, and more. Banks that act with alacrity in moving to a cloud-based collections model stand to gain, especially given the possibility of rising defaults in the coming months.