digital transformation strategy

3 Key Performance Indicators (KPIs) to Measure the Success of a Digital Bank in 2020

The global online banking market size is anticipated to reach $29,976 million in 2023 from $7,305 million in 2016, presenting a CAGR of 22.6% between 2017 and 2023.

Today, most banks are adopting digital twin models to extend their services and better cater to their customers.

It is opined that a well-devised digital transformation strategy can bring profound benefits to online banking in terms of reduced costs and amplified profitability for banks. By calculating the ROI generated from online banking, banks can identify the limitations of their business models and further optimize them for better growth.

3 KPIs to Measure the Success of Digital Banks

  1. Digital Traction Metric

Banks offering online services can daily, weekly, and/or monthly track the number of existing users or new sign-ups on/via internet and mobile banking. By estimating the growth and evaluating the most popular channels among users, they can devise appropriate plans to improve the numbers.

More detailed metrics that can help banks deliver better services to customers would be average time spent on transactions, count of transactions left uncompleted, count of active users, frequency of failed transactions, etc.

  1. Cost to Acquire Customer (CAC) on Online Banking

Providing online banking services adds a lot to the expenditures of banking organizations. The outlay can incorporate development, sales, and marketing costs. Digital banks can calculate the worth of those costs by dividing the sum of all these costs to the count of new customers added.

CAC = (Development + Marketing + Sales Costs) / Number of New Customers

  1. Lifetime Value of Customer (LTV) to Digital Banks

Banking verticals generally have a long-term relationship with their customers. Digital banks can calculate the value that a customer is going to add to banks during their expected relationship span. The decision on how much a bank should ideally invest in customer acquisition and further services can be taken more intelligently based on that number.

Once digital banks start to measure the profitability based on the above-mentioned KPIs, they can increase their revenues by leveraging the best strategies. Banks can leverage digital transformation advisory service to explore additional KPIs and decide upon the best strategies for each KPI.

Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through its own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. We follow a coherent roadmap that includes incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.

Should you have any questions and or would like some focused professional advice, please don’t hesitate to reach out via our e-mail at info@millennial.ae.

Digital transformation advisory service

Unlock the Benefits of Digitalizing the Construction Industry

The so-called “brick-and-mortar” construction industry is moving forward and entering the digital era. Although the transition was slow initially, it has now accelerated in speed. The big market players are redefining their processes to keep pace with the new wave of digital business.

The following three Ps play a crucial role to chart a path for digitalization of construction industry:

  • Prepare for it

The construction industry has lagged in the race of digitalization mainly because of the psychology of people working in the industry – human processes were deemed better than the machines. However, as the industry has evolved, so has its outlook on digitalization. It is important for those driving the construction industry to identify the areas ripe for digitalization and prepare themselves for the change.

  • Pilot it

For successful digitalization of construction industry, the key is to start small. Ideally, enterprises should pilot it among a small portion of their business or a single project and give time for their team members to understand the technology and get used to the change. Long-lasting, sustainable changes happen gradually, so go slow.

  • Process it

To create and amplify impact across the entire enterprise, there is a need to process it. Businesses should capture changes, comprehend how the results were achieved and repeat the same process. Additionally, enterprises should review existing processes to identify more areas for digital transformation to maximize their benefits and revenue.

Take away

Digitalization in construction industry is in its infancy; however, it is poised to reinvent the industry, leading to efficient business processes, reduced operational costs, and improved productivity. Embracing digitalization is no longer an option – it is a necessity.

At Millennial Partners, we offer business-oriented digital transformation advisory service to help enterprises across various industries integrate blockchain into their operations. We offer comprehensive solutions – from use-case identification to solution implementation to deployment – to help businesses accomplish their goals.

Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes and technology through own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. Our digital transformation roadmaps include incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence and IoT.

Should you have any questions and or would like some focused professional advice, please don’t hesitate to reach out on our e-mail at info@millennial.ae