How a DXP Platform Can Make Financial Institutions More Agile?

Today’s financial institutions face many challenges, ranging from regulatory shifts to changing consumer behaviors and technological development. To compete in this dynamic environment, they must embrace agility and innovation. One powerful tool enabling your company to do so is a DXP—digital experience platform. How exactly can they help financial institutions?

DXPs are comprehensive suites of digital tools and technologies that enable organizations to create, manage, and deliver personalized digital experiences across various channels and touchpoints. Initially popularized in the realm of customer experience management, DXPs are now gaining traction in the financial sector as institutions seek to modernize their operations and stand out in the competitive market.

“[DXP is] an integrated set of technologies designed to enable the composition, management, delivery and optimization of contextualized digital experiences across multiexperience customer journeys.”

Source: Gartner

The scope of their capabilities can be very extensive:

Thriving in a Dynamic Landscape: The Agile Advantage for Financial Institutions

In today’s rapidly evolving financial landscape, speed is paramount. However, complex legacy platforms often hinder financial institutions (FIs) from keeping pace with the ever-changing needs of their customers and the market. Thankfully, DXPs can help you with this challenge.

Digital experience platforms are based on classic content management systems (CMS), but they are enhanced with additional functions that result in higher agility and flexibility. They help financial institutions keep up with the dynamically changing market and customers’ needs.

Here’s how DXPs can help your financial institution grow and optimize its operations:

LOW-CODE DEVELOPMENT FOR RAPID INNOVATION

Digital experience platforms are revolutionizing the way financial institutions innovate and adapt to change, particularly through their low-code development capabilities. It refers to a visual approach to software development that allows users to build applications with minimal hand-coding and instead relies on drag-and-drop interfaces and pre-built templates.

DXPs equipped with low-code development tools empower financial institutions to rapidly prototype, develop, and deploy new digital solutions without the need for extensive coding knowledge or expertise. This democratization of development enables business users, such as product managers, marketers, and customer experience professionals, to actively participate in the creation of digital experiences, thereby accelerating the innovation cycle.

By abstracting away the complexities of traditional coding, low-code development enables teams to focus on the functionality and user experience of their applications. This streamlined approach reduces development time and costs while increasing agility and flexibility. Moreover, low-code development fosters collaboration between business and IT teams, allowing for faster iteration and alignment with business goals and customer needs.

RECONFIGURABLE PLATFORM FOR EVOLVING NEEDS

DXPs offer FIs a reconfigurable platform that is well-suited for the evolving needs of financial institutions. This adaptability is essential in the dynamic landscape of finance, where market trends, customer expectations, and regulatory requirements are constantly changing.

At the core of a DXP’s reconfigurable platform is its modular architecture, which allows components to be easily added, removed, or modified to accommodate shifting priorities and emerging opportunities. This flexibility enables financial institutions to evolve their digital presence in response to changing business objectives, competitive pressures, and technological advancements.

With a reconfigurable platform, financial institutions can:

• Modularize digital capabilities into reusable components, such as content management systems, e-commerce engines, customer relationship management tools, and more. 
• Customize user journeys based on individual preferences, behaviors, and transaction histories.
• Adapt to regulatory changes in compliance measures, such as data privacy regulations or security standards.
• Integrate with third-party systems and services to support operations, from core banking systems to payment gateways to risk management solutions.
• Scale to meet demand in user traffic, data volumes, and transaction volumes without sacrificing performance or reliability.

FRICTIONLESS DELIVERY FOR FASTER GO-TO-MARKET

DXPs streamline financial institutions’ go-to-market processes through frictionless delivery mechanisms, catalyzing the swift launch of new digital products and services. These platforms integrate development, deployment, and operational processes seamlessly, removing obstacles that traditionally hindered rapid innovation.

With intuitive development tools and frameworks, DXPs simplify the creation of digital experiences, allowing teams to focus on innovation rather than grappling with technical complexities. By automating deployment pipelines and embracing cloud-native architectures, DXPs ensure that code changes are tested, validated, and deployed seamlessly across different environments, from development to production. This automated approach enhances the reliability and consistency of deployments while accelerating time-to-market for new features and updates.

DXPs use scalable infrastructure and microservices architectures to support rapid growth and adjust to changing demand. Cloud-based hosting providers offer elastic resources that can be dynamically scaled in response to changes in user traffic and computational workloads. DXPs enable teams to develop, deploy, and update components separately (without disrupting the entire system) by breaking down monolithic applications into smaller, independent services. This modular approach promotes faster iteration and more agile development practices, allowing institutions to deliver value to customers in shorter cycles.

CONTENT AS A SERVICE (CAAS)

Content as a service is a key feature of digital experience platforms that revolutionizes content management for FIs. CaaS separates content creation and management from the presentation layer, enabling institutions to create once and publish across multiple channels seamlessly.

With CaaS, content becomes a modularized and reusable asset, empowering institutions to deliver consistent and personalized experiences across websites, mobile apps, social media platforms, and more. By separating content from presentation, DXPs equipped with CaaS capabilities streamline content creation, approval, and distribution processes, allowing institutions to adapt quickly to changing market dynamics and customer preferences.

Furthermore, CaaS enables financial institutions to personalize content at scale, driving engagement and conversion rates. DXPs use data analytics and machine learning algorithms to deliver relevant and targeted content to individual users based on their preferences, behaviors, and past interactions. 

By analyzing user data in real-time, DXPs can dynamically adjust content recommendations, layouts, and messaging to optimize engagement and drive desired outcomes. This personalized approach enhances customer satisfaction, fosters brand loyalty, and ultimately drives business growth for financial institutions.

PERSONALIZED ONE-TO-ONE COMMUNICATION

DXPs gather insights into individual customer preferences, behaviors, and interactions across various touchpoints through advanced data analytics and machine learning algorithms. This is especially important in the financial sector, where financial institutions can use this data to deliver personalized content, offers, and recommendations tailored to each customer’s unique needs and interests.

DXPs enable financial institutions to deliver personalized experiences, making use of automation and dynamic content delivery capabilities. By segmenting customers based on demographic information, transaction history, browsing behavior, and other relevant data points, DXPs ensure that each interaction is contextually relevant and timely.

Whether it’s sending targeted email campaigns, displaying personalized product recommendations on a website, or providing tailored offers within a mobile app, DXPs empower institutions to deliver the right message to the right customer at the right time, driving engagement and conversion rates.

COMPOSABLE ARCHITECTURE FOR LIMITLESS POSSIBILITIES

DXPs have a composable architecture that offers financial institutions limitless possibilities for innovation and customization. It breaks down complex systems into modular components, each serving a specific function and interacting seamlessly with one another. By separating components and services, DXPs enable institutions to mix and match capabilities to create tailored digital experiences that meet their unique business requirements and objectives.

Financial institutions can rapidly assemble and deploy new digital solutions with a composable architecture without being constrained by monolithic systems or rigid frameworks. This agility allows them to respond quickly to changing market dynamics, customer preferences, and regulatory requirements. Whether it’s launching a new mobile banking app, implementing a personalized recommendation engine, or integrating a third-party payment gateway, DXPs provide the flexibility and scalability needed to support innovation and drive business growth.

What’s more, DXPs facilitate ecosystem integration, enabling financial institutions to leverage a diverse array of internal and external services, applications, and data sources. This approach fosters collaboration and partnership across the ecosystem, allowing institutions to tap into the collective expertise and resources of industry partners, fintech startups, and other stakeholders. By harnessing the power of APIs, microservices, and event-driven architectures, DXPs enable institutions to create seamless end-to-end experiences that deliver value to customers and stakeholders alike.

Wrapping up

Digital experience platforms are powerful tools for enhancing agility and innovation in financial institutions. By providing unified customer experiences, enabling rapid product development, or facilitating agile content management, DXPs help financial companies stay responsive to changing market dynamics. Embracing these platforms is not just about keeping up with the competition – it’s about leading the charge and shaping the future of your business.If you’d like to know more about finding and implementing the best DXP platform for your FI, don’t hesitate to contact us. At Efigence, we specialize in working with financial companies and are eager to assist you, too!