Our goal is digital, secure, inclusive and personalized banking.

Our goal is digital, secure, inclusive and personalized banking.

29. 03. 2024.

The banking sector has entered the inevitable process of digitalization and the introduction of new technological solutions, which focus on the experience of the bank's client, somewhat sluggishly and relatively late. However, unlike traditional ones, some smaller, newer and more flexible banks have shown a clear vision and an enviable willingness to successfully go through a very complex and demanding transformation. One such organization is Naša banka ad Banja Luka. We talked about their valuable insights, instructive experiences, as well as the challenges they face in the modernization process with Novak Popić, MA, Member of the Management Board of Naša banka for IT, Human Resources and Organization, Card Processing, Marketing and Communications, and Legal Affairs.

What does transition entail? What challenges does a bank face in the transformation process? What is considered a successful transformation and modernization? How do the introduced innovations make the customer experience more positive? These are just some of the questions to which we will receive very interesting and concrete answers below, shaped by the experiences gained during the intensive and comprehensive transformation of Our Bank.

THE REAL CHALLENGE IS THE METHOD OF TRANSFORMATION

• Dear Mr. Popić, banks often struggle with large and complex challenges on the path to modernization. How can institutional leadership help navigate the complexity of transition and inspire an organizational shift in mindset to embrace innovation and “unlock” new growth?

– Compared to other sectors, banking has been relatively late in understanding the need to connect all transactions and activities to the customer experience, especially traditional banks. Traditional banks, which are product-driven, tend to be product-centric rather than customer-centric. Unlike newer FinTech, more established financial services companies also face the burden of legacy platforms, components and mainframes that can be over 30 years old.

Instead, some organizations must work with what they have and continuously innovate to achieve their goal. The real challenge is how you make the transformation, not whether you can do it.

We are one of those organizations and as such, we made a bold decision and successfully implemented an accelerated transition to the new CBS (Core Banking System) with the aim of comprehensively improving the operations of Our Bank.

To achieve transitional progress on this path of modernization, institutional leadership in banking needs to bridge the gap from “product” to “customer.” It also needs to engage in horizontal work across specializations and disciplines, rather than solely, or primarily, vertically within individual parts of the organizational structure.

I have noticed that many companies today, when transforming, are focused on digitalizing the front-end, and less on simplifying technology, processes, organizational structure from start to finish, or empowering people. Transformation is the coming together of all these components to create a modern, innovative culture and mindset.

Our bank is on a great upward trajectory after introducing and adopting banking innovations. We continue to develop and affirm a high-performance culture that encourages experimentation and continuous improvement. While setting a culture is important, it is even more important to connect innovations to business results. You can only get the best results from the innovations you introduce when you ensure that they directly impact the clients you serve.

• The global banking environment is defined by a broad digital transformation, increased competition from new market entrants and platforms, and evolving customer behavior. How is our bank adapting to this change? What is the role of the transformation and technology team in embracing and adapting to this paradigm shift, while simultaneously fostering the development of new digital ecosystems?

– The pace of digitalization is accelerating worldwide, bringing to the fore key issues around the balance between privacy, security and the benefits of unlimited data flow and innovation. The main goal of the team implementing the digitalization changes is to ensure that Our Bank truly becomes a customer-centric, trusted digital bank that is not afraid to innovate banking to meet the needs of customers in the future. This means continuously working on our processes, technology, infrastructure and skills needed in the future to provide a complete, efficient and enjoyable customer experience.

The digital transformation in financial services is often seen as the front-end interface with customers. But that is only one aspect of digitalization, or what customers see. If your processes from start to finish are not optimally aligned and fully digital, even a fantastic mobile operating system will not provide a fast and seamless service to the customer. Banks today mostly focus on the front-end digital process and often forget the back-end, thus neglecting the overall end-to-end process.

At Naša banka, we adopt a bold approach to transformation that continuously empowers all our participants to reimagine what banking should be today, and what it could be tomorrow, on a global scale – digital, secure, inclusive and personalized.

Our approach therefore develops in three directions:

Above all, we strive to take a collaborative and customer-centric view of innovation across all products and services to reduce resistance and increase the speed at which ideas are transformed into solutions,

Next, we strive to establish the industry standard for robust operational and cyber security,

And, third, work on the strengths of our employees to differentiate ourselves as an employer of choice and an inclusive, future-ready workforce.

We believe these strategies can help protect Our Bank in the future and ensure that we remain innovative, sustainable and fit for purpose for years to come.

WE PROTECT OUR CLIENTS

• What is digital banking and how does it differ from traditional banking at Naša banka?

– Our Bank’s digital banking refers to the use of digital channels, such as websites, mobile applications and online platforms, to conduct banking activities and transactions. It enables Our Bank’s customers to access and manage their accounts, make payments, transfer funds and perform various other banking activities in a simple and remote manner. Digital banking differs from traditional banking as it eliminates the need for physical branch visits and allows customers to access banking services anytime, anywhere via digital devices, which is what Our Bank strives for.

• What security measures exist to protect digital banking transactions in Naša banka?

– Digital Banking Platforms Naša Banka implement various security measures to protect customer information and transactions. These measures include encryption techniques for secure data transmission, multi-factor authentication to verify the user’s identity, and monitoring systems to detect suspicious activity. Strong password requirements, frequent password changes, and the use of biometric authentication, such as fingerprint or facial recognition, provide an additional layer of security. We also use advanced fraud detection systems to identify and prevent unauthorized transactions. To ensure the security of their digital banking transactions, it is essential for customers to follow best practices such as using secure networks, regularly updating devices and software, and being vigilant to avoid identity theft attempts.

SYSTEMS SHOULD BE CONSTANTLY REVISED

• In what ways can our bank's clients obtain information regarding digital banking, resolve any problems, or seek assistance regarding this type of service?

– Customers can typically obtain information or seek assistance regarding digital banking services through various channels. We, like most banks, provide customer support via phone lines and email. Customers can contact the bank’s customer service department to report issues, seek clarifications, or get assistance with digital banking features. Our bank also offers comprehensive online resources, such as FAQs, video tutorials, and user guides, to help customers navigate digital banking platforms and resolve common situations.

• Banks often operate on layers of legacy infrastructure and multiple platforms. Is there a more permanent solution to ensure the efficiency of such a system and how is Naša banka addressing this challenge?

– The long-term solution would be to ensure that existing infrastructure and platforms remain relevant to our business and customers. These systems need to be continuously reviewed, updated and improved to ensure that the ever-increasing needs of customers are met, and this is achieved by using the right technology.

Technology is at the heart of many of the solutions to our and our clients’ biggest challenges. By taking a collaborative and customer-centric view of innovation across all of our products and services, our data-driven approach allows us to be more customer-centric, building customized solutions and experiences that deliver real value. This approach also helps negate unnecessary layers of legacy infrastructure and platforms.

To innovate quickly and securely at scale, we need to simplify and standardize the basic building blocks of our technology architecture, balancing resilience and agility as new technologies are introduced and existing systems are maintained. At Naša banka, we have clear frameworks and oversight for the development of new technology. We implement a secure environment for software development, innovation, and experimentation with cutting-edge technology, all in order to continuously innovate and enhance existing solutions with new technology.