Operational Agility in Banking: From Aspiration to Action

In today’s rapidly evolving financial landscape, operational agility is no longer a luxury for banks—it’s an imperative. As digital disruptors and fintechs continue to reshape customer expectations and redefine what’s possible, traditional banks face mounting pressure to move beyond strategic intent and deliver tangible transformation. Yet, despite widespread recognition of the need for agility, many banks remain stuck in the gap between digital ambition and operational reality. Why is this the case, and what can be done to close the gap?

Recent research with over 1,000 senior banking leaders worldwide reveals a stark truth: while 83% of banks have a clearly articulated digital transformation strategy, more than half (60%) admit they have yet to make significant progress on execution. The urgency is clear—banks that fail to adapt risk losing ground to digital-first challengers, tech giants, and rapidly shifting customer expectations. The COVID-19 pandemic has only accelerated this urgency, exposing gaps in both customer experience and operational transformation.

Operational agility is the ability to rapidly adapt processes, technology, and culture to deliver new products, services, and experiences at speed and scale. It’s about moving from slow, siloed decision-making to a model where cross-functional teams can experiment, iterate, and respond to market changes in real time. For banks, this means not just keeping pace with digital disruptors, but setting the pace themselves.

Despite the clear imperative, several entrenched barriers continue to slow progress:

• Legacy Technology: Outdated core systems are a top barrier, cited by 37% of banks as the main obstacle to operational transformation. These systems are expensive to maintain, difficult to integrate, and limit the ability to innovate or personalize customer experiences.
• Cultural Inertia: Many banks are still structured in traditional vertical silos, with teams focused on discrete products or business functions. This makes it difficult to deliver seamless, customer-centric experiences and slows the pace of change.
• Skills and Talent Gaps: A lack of digital skills and a reluctance to embrace new ways of working are significant hurdles. Banks recognize the need to upskill existing talent and attract new digital expertise, but progress is uneven.
• Data Silos: Difficulties in accessing and combining data across systems limit banks’ ability to gain real-time insights, personalize offerings, and drive operational efficiency.
• Regulatory Complexity: Navigating evolving regulatory requirements adds another layer of complexity, particularly as banks seek to adopt new technologies and operating models.

While many banks are still finding their footing, a growing cohort of transformation leaders is showing what’s possible. These banks share several key traits:

• Embracing Agile Operating Models: Only 20% of banks report having a fully agile operating model, but among transformation leaders, this figure rises dramatically. Agile banks organize cross-functional teams around customer journeys or business outcomes, empowering them to make decisions and deliver change rapidly.
• Modernizing the Core: Investment in modern, cloud-based core banking systems is the top operational priority for the next three years. By decoupling from legacy technology, banks can accelerate innovation, reduce costs, and enable real-time data access.
• Investing in Talent and Culture: Leading banks recognize that technology alone is not enough. They are investing in upskilling existing employees, hiring for digital skill sets, and fostering a culture of experimentation and accountability.
• Leveraging Data and Intelligent Technologies: Banks that have made the most progress are those that have invested in modern data architectures, enabling real-time insights and better decision-making. AI, machine learning, and automation are increasingly central to these efforts.
• Building Partner Ecosystems: Transformation leaders are forging partnerships with fintechs, technology providers, and other ecosystem players to accelerate innovation and scale new offerings.

To move from aspiration to action, banks should consider the following practical steps:

1. Rethink Team Structures: Move away from traditional silos and create cross-functional, end-to-end teams focused on specific customer journeys or business outcomes. These teams should include members from both front and back office, meeting regularly to drive progress and accountability.
2. Modernize Technology Foundations: Prioritize investment in cloud-based core systems and data platforms that enable agility, scalability, and real-time insights. This is the foundation for rapid product development and personalized customer experiences.
3. Foster a Culture of Agility: Encourage experimentation, empower teams to make decisions, and reward outcomes over process. Leadership must model the behaviors they wish to see, embracing new approaches to performance, planning, and decision-making.
4. Invest in Talent and Skills: Upskill existing employees, attract new digital talent, and cultivate a data-driven mindset across the organization. Ownership, curiosity, and empathy are as important as technical expertise.
5. Leverage Intelligent Technologies: Deploy AI, machine learning, and automation to streamline operations, enhance customer experiences, and unlock new growth opportunities.
6. Expand Partner Networks: Collaborate with fintechs, technology providers, and other ecosystem players to accelerate innovation and bring new offerings to market faster.

Transformation leaders are already reaping the benefits of operational agility:

• Faster Time to Market: Agile teams and modern technology foundations enable banks to launch new products and services in months, not years.
• Improved Customer Experience: Real-time data and cross-functional collaboration allow for more personalized, seamless customer journeys.
• Lower Cost to Serve: Automation and efficient processes reduce operational costs and free up resources for innovation.
• Resilience and Adaptability: Agile banks are better equipped to respond to market shocks, regulatory changes, and evolving customer needs.

Operational agility is the critical enabler that will determine which banks thrive in the digital era. The journey from aspiration to action is challenging, but the rewards are clear: faster innovation, happier customers, and a sustainable competitive edge. By rethinking team structures, modernizing technology, investing in talent, and fostering a culture of agility, banks can close the gap between digital ambition and operational reality—and lead the way into the future of banking.

Ready to accelerate your operational agility journey? Publicis Sapient partners with leading banks worldwide to turn strategy into action and deliver transformation at speed and scale.

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