Why organizational culture is important for Digitalization in the banking sector?

Banking culture, essentially, is a balance of two elements-technology and people. Technologies can’t work independently, and thus, for a company’s digital success to thrive, one must in all sense create a workforce that can adapt to the transformational change. Great companies have understood that the ultimate throttle on the growth of any company is not technology, markets, competition, or product; it is the people. The people working in the organization form the core of its business and, without them, every effort of infusing change lies flat.

Changing the business culture that a company has long inherited is equal to beginning an organization from its first brick. Needless to say, it’s an intimidating job.

The banking and financial sector has undergone radical changes and improvements in the last few years and is in a constant state of development. Digitalization has brought the banking industry new business models, development concepts, and areas of improvement, from internet banking to monetary transactions. These new implementations to the financial sector require the employees to be aware of the rapidly changing work environment and the overall state of change in the financial sector

Digital transformation is the key to business competitiveness in a changing and increasingly demanding market. However, for this technological reform to be successfully completed, banking culture is needed to promote innovation and creativity within companies

Creating a digital banking organization requires a focus beyond new technologies. A ‘digital bank culture’ must be created and reinforced from the top-down and bottom-up

The biggest obstacle to achieving digital culture is the culture itself that’s rigid and reluctant. Traditional business culture lacks flexibility and is quite averse to change. So, they tend to withdraw each time you drive a change. They continue to stick to their good old ways, and in the process, lose sight of the new envisioned goals and values of the business. The result is nothing, but a terrible wipe-off. The leadership, thus, has to be decisive about how to lead the change and mesh it in every nook and corner of the workflow.