Digital transformation market is thriving and expanding. Financial institutions are pouring billions of dollars into digital transformation as more banks, and credit unions automate and digitize their offerings. As the demand grows, people developing and supporting these digital frameworks become essential. It’s common for financial institutions to have a single person responsible for running and managing the tech department. It is either a Chief Technology Officer (CTO) or a Chief Information Officer (CIO). However, a single executive handling both digital transformation and technology can translate into a disaster for the institution. The institutions still need a CTO, but with the complexity and the nuances of the market, the need for a Chief Digital Officer (CDO) is on the rise.
Finding the Right Chief Digital Officer
Every financial institution might have their requirements, but a CDO should have these traits to perform effectively.
1) A Progressive Thinker: A CDO must think imaginatively regarding the digital transformation of the business. Plus, a CDO must have the expertise to digitize the organizations current business strategy.
2) A Creative Disruptor: They should be able to work on a business-driven approach to generate competitive differentiation that leads to revenue growth and increased profitability.
3) Provides Good Customer Experience: A CDO must be able to offer an engaging and seamless customer experience across all digital and physical channels. They are not just responsible for online sales function but for post-sales operations as well.
4) Improves Internal Efficiency: They should gain competitive differentiation by working within the industry boundaries and not wholly disrupting the company. They must encourage the use of new technologies to transform the organization's entire value chain while improving the internal efficiency and reducing costs in the process.
5) Oversees Everything: Manages the whole spectrum of digital strategies such as business models, customer experience, digital technologies, and marketing. They should also be in charge of internal and cultural organizational change management process.
6) Cross-Functional Change Agent: A CDO must work as a company’s central leader and an intermediary between all other executives and functions. They must be able to bridge the gap that might exist between various services and business units.
The organization must ask themselves these two questions before hiring a CDO. Do they need someone who can build a digital transformation roadmap leveraging the technology available in the organization? Or Do they want a thought leader and a visionary who partakes in every function and touches every part of the business? Therefore, hiring the right CDO is perhaps the most critical personnel decision for a financial institution. If the values and the vision of the CDO are not consistent or do not align with the enterprise, it could spell disaster.