Developing a digital edge

“Businesses can no longer afford to consider digital in a silo,” says Jonathan Aguallo, Global Commercial Banking Digital Executive. “Digital has become an expectation. It is critical to brand, acquisition, process efficiency, client and employee satisfaction and more. Layer in the sheer velocity of change, and success calls for a continuous innovation cycle with a digital-first perspective.”

As companies plan for the rest of 2022 and beyond, Bank of America thought leaders point to four broad trends and specific areas shaping digital strategy today:

1. Harnessing the power of data

New technology platforms — social media, website interactions, loyalty programs, digital payments — are generating exponentially larger amounts of data, stressing leaders on how to best harness their data in the most effective way. Data management objectives should align to the goal of helping you make better and smarter decisions, improve your internal processes and provide personalized experiences to your customers — whether retail customers or business clients.

A company must focus its data strategy on visibility and access, accuracy, security and appropriate reporting capabilities. To maximize the value of data, experts say, you need an end-to-end plan that covers all the bases.

“Too oſten, companies start with data analytics without having a holistic strategy that covers collection to distribution. Businesses should start with understanding how to capture accurate data from customers, vendors, products and capabilities.” Aguallo says. “Next you have to store data in an authorized way so that you can use it. Then you have to have an analytics layer, and finally, you need a clear distribution strategy.”

2. Incorporating transformational technologies

Technological developments are happening at lightning speed, from cloud computing to blockchain applications. How can a modern business incorporate the most meaningful of these, and for the best return? And what’s top of mind this year?

With the importance of data growing exponentially, predictive analytics powered by AI and machine learning ranks high on our list. Both of these innovations are delivering sophisticated, tailored solutions, with machine learning helping to identify trends, while real-time data and integrated systems increase visibility and transparency.

Artificial intelligence is a fast-growing area. Deployed with data, AI/machine learning allows companies to rapidly draw out more sophisticated and accurate predictive insights. It allows for personalization of messages and customer relationships, oſten enhanced with natural language processing capabilities, and also is fueling the growth of virtual assistants. At Bank of America, we use our award-winning consumer tech—ERICA®, a Siri-like solution for banking—internally, to help teams become even more efficient and responsive to client needs. Companies can similarly leverage AI to speed up and save costs on repeatable tasks.

The backdrop for all this is the overwhelming importance of speed. For consumer-facing businesses, “The types of technology that literally take three seconds of friction out of an experience are winning—for example, mobile phone payments and digital wallets,” Aguallo says. “These technologies provide the outcome that people expect, which is speed, convenience and security—anytime, anywhere: from my living room, a hotel, the top of the mountain. These technologies enable that customer experience.”

At the same time, companies can take advantage of a host of sophisticated tools and solutions that can serve as accelerators for data, enablers that drive efficiency, speed, convenience, security and help deliver on strategy—whether that’s a B2C or B2B strategy or internal process improvements.

3. Providing integrated experiences

A successful digital strategy requires integrating digital tools and data throughout the organization. One way to think about integration is to consider your company’s top 10 daily functions that require access to data. Is the data usable, visible, secure, integrated?

Cross-app and platform integrations make customer and client relationships better. APIs and modern soſtware platforms help release data from silos, making it accessible throughout an organization. With Bank of America’s digital options, for instance, “Payment is integrated, the documents are integrated, the checkout is integrated, the data is integrated,” says Aguallo. “We want to meet our clients wherever they want to be next. We don't want to make it about Bank of America. We want to make it about integrating into their life.”

For business clients, that might mean investing in products that allow them to access data and information in one place—for instance, Bank of America’s Intelligent Receivables®, an innovative matching solution using AI that helps to take the manual work out of reconciling receipts.

4. Assessing today’s risk management

With increased connections and digitized functions across the business world, cybersecurity has never been more important. Cybercrime is a threat, but on the flip side, smart technologies like digital consumer payment options that are processed instantly can also improve security, reduce errors and prevent fraud. Bank of America is deeply invested in the next-generation security technology to protect systems and clients. “It's table stakes that you're keeping my data secure. It's not an advantage, it is expected,” Aguallo says. “So modern risk management has to be top of your management team strategy.”

Companies also face increased risks from a lack of attention to proper corporate social responsibility, something that draws more scrutiny from a wider set of stakeholders: from clients to consumers, employees to shareholders. Over the past few years, the impact of corporate action—or inaction—has grown in importance, especially to younger generations, giving rise to Environmental Social Governance (ESG) initiatives that place digital at the center as the best solution to address the challenges ahead. Take, for instance, the ability to move from paper to digital records and billing, which addresses environmental concerns that resonate with Gen Z.

An integrated approach is key

Digital by design is all about making customers’ and employees’ lives, and your relationships, faster, smarter and more secure. To achieve these goals, it is important that digital initiatives are considered across the entire business and integrated into your broader business strategy. “Start with a blank sheet of paper, and reimagine your customer and employee interactions,” Aguallo says.

Whatever you want to achieve, the companies who embrace digital transformation with intention, discipline and speed will find their digital edge and capitalize on it for wide-ranging and long-lasting success for customers and employees.