Leveraging symbiosis to deliver customer delight in a rapidly changing business & technology environment
Research from Australia shows that 90 percent of Gen Z are anxious1 about speaking on the phone, and experts say that kids aren’t learning the proper phone skills. Self-service kiosks are proliferating. Cinemas and fast food restaurants, convenience stores, and airline check-in desks – the kiosks are everywhere. I’ve even seen queues for the self-scanning machines in grocery stores when the human cashier lines are mostly empty. What do these examples have to do with banking? Not only do they show changes in expectations and behaviors, but they also show that these new approaches are not completely replacing the old ways. People still expect to be able to visit bank branches, talk to real humans on the phone, while at the same time expecting to be able to interact 24x7 via their mobile phones. The rise of digitization has led to some challenges, leading Accenture2 to recently forecast that GenAI will take the banking experience back to the future – to a time when customers were treated as individuals.
For banks, this creates a challenging situation – the need to adopt new technologies while reducing overall costs without the ability to completely shutter older services. Technology can help. The latest core banking platforms offer the ability to quickly and efficiently introduce new products and services while offering support for existing capabilities. But getting from here – a legacy infrastructure that has evolved over decades – to there – a bright new world of next-generation, open systems is challenging. The traditional "rip and replace" approach to upgrading core banking systems is fraught with risks and high costs. Enter the concept of symbiosis—a strategic approach that allows banks to deploy next-generation, open digital core banking platforms alongside their existing IT infrastructures. This approach not only mitigates the risks and costs associated with wholesale system replacements but also enhances operational efficiency, customer experience, and employee training, particularly in the lending sector. Let’s look at the use of symbiosis in lending from an operations and customer delight perspective.
Doing things right
The foundation for this transformation starts with operational efficiency. Here, symbiosis excels. It helps banks to gradually integrate new digital core banking platforms into their existing IT landscape. This phased approach allows for continuous operations without the disruptions typically associated with large-scale IT overhauls.
Focusing on the lending side of the business, this means that loan processing systems can be upgraded to leverage advanced analytics, automation, and artificial intelligence (AI) without shutting down existing operations. For instance, AI-driven credit scoring models can be integrated with legacy systems to enhance the accuracy and speed of loan approvals. This not only reduces the time and cost associated with manual credit assessments but also minimizes the risk of human error. Taking a broader, customer-focused perspective – by streamlining, simplifying, and automating lending processes – banks can deliver the kind of intuitive experiences that customers have come to expect. Not only can this be a source of competitive advantage, but it can be a sustainable advantage as next-gen core banking platforms enable continuous improvement as well as innovation.
Moreover, the symbiosis strategy allows for the seamless integration of new regulatory compliance tools. As regulatory requirements continue to evolve, banks can quickly adapt by incorporating new compliance modules into their existing systems. This ensures that the bank remains compliant without the need for extensive system overhauls.
Delivering delightful experiences
In the highly competitive lending market, customer experience is a key differentiator. The symbiosis strategy enables banks to offer a superior customer experience by leveraging the latest digital technologies while maintaining the reliability of their existing systems.
For example, by integrating the lending platform with internal and external systems and augmented data sources, banks can provide a more personalized and seamless borrowing experience. In addition to being able to apply easily, receive decisions quickly, and track progress in real-time, banks can leverage ecosystem advances to reach new market segments while reducing cost and risk. So, while the lender uses transparency and convenience to enhance customer satisfaction and build trust and loyalty, they are also growing their business safely.
Additionally, the symbiosis strategy allows banks to offer innovative lending products tailored to the needs of ever-more focused customer segments, ideally down to the ‘niche of one’. For instance, by leveraging data analytics and machine learning, banks can develop personalized loan offers based on individual customers' financial behaviors and preferences. This targeted approach not only increases the likelihood of loan approval but also ensures that customers receive products that best meet their needs. By tailoring products to individuals, not only can lenders get closer to their customers – thereby increasing propensity to purchase – but they can foster loyalty and gain wallet share.
Making the change
As Winston Churchill said, “To improve is to change; to be perfect is to change often.” But change is difficult, so surely transformational change is even more so? One of the significant advantages of the symbiosis strategy is its ability to facilitate effective change management. Implementing new technologies can be a daunting task, often met with resistance from employees accustomed to existing systems. The symbiosis strategy mitigates this challenge by allowing for a gradual transition, while limiting the impact of change to the area of focus.
Symbiosis could be focused on a specific area of lending – for example, personal loans or buy-to-let mortgages. By integrating the new platforms alongside the existing systems, banks can focus the change management approaches on the specific employees and business processes being improved. By providing the time and resources needed to adapt to the changes, a symbiosis approach reduces the stress and disruption typically associated with large-scale IT transformations. Employees can gradually familiarize themselves with new tools and processes, leading to a smoother transition and higher adoption rates.
Furthermore, the symbiosis strategy supports continuous improvement and innovation. As new technologies and tools are introduced, banks can pilot these innovations in specific areas before rolling them out across the organization. This iterative process allows for the identification and resolution of potential issues early on, ensuring a more effective and efficient implementation. The pace of technological change and the dynamic competitive landscape means that, to thrive, leading organizations will need to embed adaptability in their DNA.
Don’t forget the power of people
Convincing people to get on board the transformation train is challenging enough, but today’s dynamic environment means that trains are arriving on a near-continuous basis. The typical approaches, which focus on equipping employees with the skills needed to use the new technologies effectively, are necessary but not sufficient. Too many training programs, in too short a time, would leave little time to conduct the business of banking. Symbiosis can help solve this challenge.
By focusing the change on specific areas, the shape of the challenge changes. Instead of massive, disruptive change, it shifts to incremental, evolutionary change. Bite-size but still transformative. Enabling people to thrive in this new world means a mindset change – a culture of continuous learning and innovation. Symbiosis means that these changes are less disruptive, faster, and as new technologies and tools are integrated into the existing systems, employees are encouraged to stay updated with the latest industry trends and best practices. This not only enhances their professional development but also ensures that the bank remains at the forefront of technological advancements. By empowering employees in these ways, banks can enhance their operational efficiency and deliver a superior customer experience.
Conclusion
In conclusion, the symbiosis strategy to deploying next-generation, open digital core banking platforms alongside existing IT infrastructures offers a practical and strategic solution for banks looking to modernize their operations. For the lending side of the business, this approach enhances operational efficiency, delivers superior customer experiences, and empowers employees through comprehensive training programs.
By embracing symbiosis, banks can navigate the complexities of the rapidly changing business and technology environment, ultimately delivering customer delight and maintaining a competitive edge in the market.
1CBS News, Gen Z developing fear of phone calls, or "phone phobia"
2Accenture, Banking: The future is back. Trends shaping the industry in 2025 and beyond
Swathy Parthasarathy
As Chief Operating Officer Swathy Parthasarathy leads services, customer support, marketing, operations, and governance teams. Swathy has global responsibility for helping our customers leverage their investments in technology to execute their strategy and drive business outcomes.
Prior to joining...
