AI and advanced technology applications grab the headlines and attention across the business community every day; understandably. However, for many organisations, there are other tech developments and customer engagement interventions that need to be addressed first. And for many mid-sized organisations with legacy systems and processes, and potentially smaller investment budgets than larger corporate competitors, making the right technology and roadmap decisions can be a major challenge.
This was captured perfectly by Paul Denton, CEO, Scottish Building Society during a panel discussion at the launch of the BSA / Whitecap report on the sector in the summer. He observed building societies are serving customers today that expect modern tech applications such as apps to manage their accounts, whilst at the same time having customers who rely on paper-based passbooks. He was considering what branch interactions will be like in 10-years’ time?
Reflecting on the session, Paul commented:
“Today’s financial landscape is far more complex than it once was, with options ranging from robo-advisors to crypto wallets. This overload of choices can confuse people, and the complexity is made worse by a lack of accessible financial education.
This is why the mutual model has stood the test of time. Growth in our sector is built on loyalty and trust and in an age of misinformation and risky financial products, the need for straightforward, reliable options has never been greater. It’s important to us to provide choice to our members through our branches, passbook savings and a personal approach to mortgage underwriting. At the same time, we’re enhancing our digital tools to give members secure, convenient access to their savings and their documents online.”
At the heart of this thought is to what degree, pace and direction, do mid-sized organisations such as building societies need to invest in tech and user experience interventions to continue to be accessible, competitive and relevant for their broad and aging customer base. Different customer segments will have different expectations at different times.
This inevitably leads to a phased and integrated omni-channel strategy, bite-sized projects within a structured roadmap, and activity aiming to improve the customer experience, reduced friction and process efficiency. These interventions and investments need to be carefully considered and planned; without breaking the bank… no pun intended.
This challenge is not limited to building societies. Many mid-sized organisations face similar challenges. Wealth management businesses, for example, have a similar and parallel challenge. On one hand, customers tend to have the funds available for investments at a certain life-stage having had successful careers, potentially some inheritance and developed a portfolio of savings. At this point, they may rely on recommendations and referrals to seek high quality investment and financial advice.
On the other hand, there are competitors targeting younger customers with high quality user technology platforms with simpler products with the expectation that these customers will develop long-term relationships overtime and stay with the investment firms as their assets grow and their needs develop and evolve over time.
Benenden Health, a provider of affordable private healthcare plans for consumer and businesses operates with an ongoing portfolio of tech innovation and delivery to meet existing and emerging customer needs.
David Winter, Head of Innovation at Benenden Health added:
“Our members trust us to keep healthcare accessible and simple but our expectations and theirs are set by what great solutions and experiences look like across sectors, not just within Healthcare.
For us, technology is an enabler, not a destination. At Benenden Health, we’re committed to creating a future where innovation and healthcare work hand in hand to support more members, more often. By investing thoughtfully in digital solutions, we ensure our members enjoy convenience and earlier intervention without losing the personal connection that defines who we are.”
Arguably, these are a common challenge facing most mid-market organisations that need to phase their investment budgets carefully, whilst at the same time delivering for various customer segments, with different expectations and needs.
Stefan Haase, Director and Tech lead at Whitecap comments:
“From a technology perspective, we regularly help clients with this phasing challenge by developing structured roadmaps that consider existing technology and suppliers, compliance and regulatory requirements.
We also assess current capabilities, processes, change management and risk functions and ascertain any existing gaps that may be present and form potential barrier to achieving a desired future state.
This is especially important for organisations on a slower digital transformation journey who still utilise and rely on legacy systems, which are more difficult to transition away from in the short to medium term.
At the same time, we seek to identify both supplier, platform and tech options that enable the medium-to long-term transition to a modern API-driven tech environment as well as working with tech consulting partners that can deliver the implementation and migration of new solutions, while also ensuring the integration into other business critical applications.”
One of our tech, data and digital innovation partners is FCamara, and John Birtwhistle, UK COO, added:
“Traditionally, many mid-sized organisations, including building societies and wealth management firms, have approached change cautiously, and understandably so. Their customer portfolios are built on decades of trust, and there’s a real fear that digital disruption might alienate loyal members or introduce unnecessary risk.
Cost is another concern, especially when legacy systems are deeply embedded. But what we’ve seen is that long, expensive transformation programmes are no longer the norm. Innovation is accelerating, and the most successful organisations are the ones identifying quick, impactful wins that build confidence internally and demonstrate tangible value to customers.
Whether it’s streamlining a back-office process or enhancing a digital touchpoint, these early wins create momentum. At FCamara, we focus on guiding organisations through this journey with empathy, pragmatism and pace, showing that transformation doesn’t have to be overwhelming. It just needs to start in the right place, with the right support.”
As with most successful projects, adopting a cross-functional engagement to understand and assess the customer, operational and tech options and requirements, helps organisations phase and synchronise critical investments and delivery.
If you’d like to discuss this blog post or share your own perspective on the issues covered, please get in touch or comment via our social media channels on LinkedIn or X.
Established in 2012, Whitecap Consulting is a regional strategy consultancy headquartered in Leeds, with offices in Manchester, Milton Keynes, Birmingham, Bristol and Newcastle. We typically work with boards, executives and investors of predominantly mid-sized organisations with a turnover of c£10m-£300m, helping clients analyse, develop and implement growth