During our KPMG-hosted roundtable webinar, we were joined by:

Mark Bernhardi
Managing Director, Australia & New Zealand, nCino

Stuart Ward
Regional Sales Director – Financial Services, Salesforce

Nick Wilde
Managing Director & General Manager, Asia Pacific, Thought Machine

We outlined a practical approach for mutual banks to embark on a digital transformation journey.

Benefits of digital transformation

We discussed the benefits of a digital transformation journey for mutual banks which included:

  • enhancing member satisfaction with improved member experience and personalisation
  • the ability to innovate (e.g. introduce new products) in an agile environment through reducing the reliance on legacy technology
  • improving long term financial performance supported by cost management
  • meeting growing regulatory compliance pressures
  • improving employee experience to retain an engaged workforce.

Improving member experience through digital transformation

Australian mutual banks have a long history of building close relationships with their members. These close relationships are particularly evident in bonded sector mutuals, and also in mutuals with a regional heartland.

Hence, there is great importance towards bringing and improving member experience for the mutuals. This is centred around the customer lifecycle which includes awareness, acquisition, development, retention and loyalty, and what the customer expects along each of these.

KPMG’s Six Pillars of Customer Experience Excellence which includes personalisation, integrity, time & effort, expectations, resolution and empathy have consistently been shown to be the essential characteristics of world class experiences and are the prerequisites for customer economics and commercial success.

A focus area for mutuals should be on the pillars of empathy that they provide to their members and the integrity of their actions. 

You may also be interested to read KPMG’s research on Future-Proofing the Mutual’s Customer Value Proposition (PDF 196KB) which has identified three key strategies for Mutuals:

1. Reimagine your identity
2. Remain focused on margins
3. Redesign your service experiences

Practical steps for mutual banks towards digital transformation

Our clients consistently experience obstacles in realising their digital transformation goals. Our practical advice in getting started:

Be clear on the vision for the transformation and the business value that will be realised out of the program of work.

Dedicate a team to the transformation effort and agree governance, metrics and measures for success upfront.

Design the service blueprint which includes what you want to deliver to your customer, how will customers engage with you and the channel and right products.

Leverage your partners to provide constructive challenge and insights into your digital transformation.

Get started – Chunk down your digital transformation program to incrementally deliver value and start to build the continuous delivery model with your partners.

Be clear on what differentiates your organisation from others and outsource the hygiene.

How can KPMG help?

Are you a mutual bank who is about to start or considering a digital transformation journey but unsure on how to begin? Or are you already on the journey and need some further guidance or have hit a roadblock?

Our experienced team can guide you through every step of this process to ensure a smooth execution. We understand that capability and capacity to execute may be a concern or that you may be having trouble balancing technical choices with existing projects or investments.

We can work with your organisation to ensure there is an integrated strategy to implement your digital transformation which may include the integration of service provides to create a coherent and improved member experience.

If you have any questions about the themes raised in our webinar or would like to find out more about how we can help you with your digital transformation, please contact a member of our dedicated mutuals team.

KPMG's Mutual Banking specialists

Further mutual banking insights