But strategic planning without action is worse than doing nothing at all.
The benefits of strategic planning are well documented.
While consumers initially did only rudimentary transactions via online banking or a mobile device, more involved engagement is now desired.
This is the result of consumers being exposed to non-banking tech organizations (Amazon, Google, Facebook, etc.) that have simplified everything from purchasing products to digitizing every component of a travel itinerary.
Done well, a strategic planning process allows organizations to set a direction, providing objectives and goals that are used for assessing progress across the organization.
Strategic planning also allows organizations to be proactive, by better understanding opportunities and threats that may be on the horizon.Being proactive can improve differentiation versus the competition and enable the efficient deployment of resources.Finally, a strategic plan increases operational efficiency, helps to increase market share and profitability, and makes the overall business more sustainable in the long term.Most institutions must re-calibrate how they engage with their customers and members to reach the potential that strategic planning is meant to achieve.Virtually every strategic plan goal or objective requires the application of data and advanced analytics to maximize success.For the past few years, the top trends mirrored the top strategic objectives mentioned by financial services organizations worldwide.The top five areas that almost every organization agreed upon as being important for success (in slightly different orders each year) were: These are all valid objectives, with the prioritization of these objectives being different at every organization.Or if there is a complete naivety about marketplace conditions including opportunities, threats and changes that could impact the institution’s future viability.However, the biggest planning issue in the financial services industry doesn’t usually center on inadequate involvement in the process, lack of goals and objectives, inability to assess the marketplace realities, or even a lack of commitment.More than 50% of banking transactions are now conducted through digital channels.This not only impacts how a consumer researches and selects their financial institution, but also how transactions are conducted.