Digital transformation - the case of BNP Paribas
On the face of it, it's not easy for a two-hundred-year-old bank to embrace the digital revolution. BNP Paribas, a financial institution born at the beginning of the 19th century, is now a leader in digital transformation in the banking sector.
And yet, in the early 2010s, the bank based on the rue d'Antin was lagging behind the neo-banks and other web-native fintechs in its digital transformation. This slow adoption of new information technologies has resulted in a loss of market share with younger customers, who are more inclined to use online services.
As a result, BNP Paribas is pulling out all the stops to initiate a 180-degree turnaround. The Group is undertaking an in-depth overhaul of its entire information system, as well as adapting its human resources to the new digital challenges. The aim? To offer a fluid, modern customer experience, both online and in the branch.
Over the years, BNP Paribas has made up for lost time to become a bank at the forefront of digital transformation. Let's take a closer look at how the Group has achieved this feat.
The challenges facing BNP Paribas as it embarks on its digital transformation
The digital transformation currently taking place in the banking sector is creating major challenges for traditional institutions such as BNP Paribas. Three main issues are emerging: economic, regulatory and security.
Economic stakes
On the business side, the exponential growth of online banking in recent years had already eroded BNP Paribas' market share. The health crisis in 2019 has accelerated the trend towards 100% digital banking, including among older customers.
What's more, web giants such as Apple, Google and Amazon are beginning to offer payment solutions that step on the toes of traditional banking establishments.
To get back on track, BNP Paribas needs to accelerate its digital transformation in order to meet customers' expectations for a fluid, intuitive user experience across all channels. The challenge here lies in the ability to capture and retain young, connected customers, while retaining more traditional ones.
Regulatory issues
In terms of regulatory constraints, the bank has also had to contend with ever-increasing pressure in recent years in terms of compliance, anti-money laundering and personal data protection.
The General Data Protection Regulation (RGPD) or DSP2 thus impose strict obligations on banking establishments in their transition to digital. BNP Paribas' digital transformation must therefore integrate these new legal requirements right from the design stage of its online services.
Safety issues
Last but not least, the growing threat of cyber-attacks means that the bank has to continually enhance the security of its information systems and web and mobile platforms.
Even the slightest hacking of its customers' banking data could permanently damage BNP Paribas' reputation. Hence the importance of designing a resilient digital architecture and effective defense mechanisms.
How did BNP Paribas initiate its digital transformation?
Faced with the challenges outlined above, BNP Paribas became aware in the early 2010s that it was lagging behind the more agile fintech players in terms of digital integration.
The group then decided to make a strategic shift to begin its transformation into the bank of tomorrow, 100% digital and 100% human at the same time. Here's a look back at the key factors behind this spectacular transformation.
A revamped IS
The overhaul of BNP Paribas' information system (IS) is the cornerstone of the company's digital transformation strategy. The aim is nothing less than to move from an organization based on silos to an urbanization of data and applications, a guarantee of agility and speed of execution.
In practice, the bank is gradually migrating its historical infrastructures to the state-of-the-art cloud. This enables data to flow transversally between different departments.
In addition, new technological building blocks are being added to the IS, such as artificial intelligence, Big Data analysis, blockchain and machine learning.
This IS modernization will enable the bank to increase its speed of execution and bring to market new digital services focused on the customer experience.
Accelerate your digital transformation with Knowmore's digital adoption solutions
💡 A pioneer in digital adoption since 2001, Knowmoreaccompaniesmajor corporations in their change management projects by facilitating the use of business applications.
Human resources support
BNP Paribas' digital transformation could not succeed without appropriate support for in-house teams.
Aware that employees are the real driving force behind change, the banking group is implementing a vast digital training plan for its 198,000 employees. The aim is to help employeesassimilation new tools and working methods, as well as to develop new skills related to tomorrow's businesses (data, cybersecurity, user experience, etc.).
At the same time, BNP Paribas is actively recruiting new talent from the digital and new technology sectors. These profiles complement the teams in place, guaranteeing innovative ideas.
Thanks to this support for change, employees gain agility and an appetite for digital solutions. They become ambassadors of the BNP Paribas brand to customers.
Train your employees with K-STUDIO :
💡K-STUDIO generates a 100% faithful virtual replica of your business applications through training modules (SCORM standard), accessible online and offline on all types of device.
Demonstrations are enriched, interactive and constantly updated. Your sales teams can present your solutions effectively, and your customers can train independently, in complete safety.
The integration of K-NOW, Knowmore's digital adoption platform, has made it possible to support all customers and users of the "Mes Comptes" application. A real success! Result: +250% monthly unique visitors to the application!
A new digital customer journey
On the front-office side, BNP Paribas is considerably expanding its range of digital products and services to meet customer expectations, particularly among the younger generation.
The bank is stepping up investment in its mobile applications, such as contactless Paylib and Lyf Pay, dedicated to the 18-30 age group. It is also enhancing its Hello Bank ! neobank with innovative functions such as account aggregation and automatic categorization of expenses.
The acquisition of neobanks such as Nickel and FLOA Bank has also broadened the customer base, targeting less-banked customers.
All in all, BNP Paribas is now positioned as the bank offering the most complete omnichannel customer experience in the sector.
Promoting multi-channel
BNP Paribas has clearly understood that the success of its digital transformation depends on a multi-channel approach, combining human and digital contact. Rather than a 100% mobile strategy, the bank has opted for a hybrid approach, depending on the customer's expectations.
As a result, bank branches are maintained throughout France for customers who prefer physical contact to carry out their transactions. However, online appointment booking and electronic signatures make branch visits easier.
At the same time, the expertise of our account managers remains accessible at all times by chat, telephone or email. The challenge is to provide customers with the best possible advice, with no disruption between the different channels.
Thanks to this unique "phygital" approach, combining a branch network and innovative digital solutions, BNP Paribas appeals to both traditional and digital customers.
Conclusion
Starting from scratch, the group has managed to catch up technologically with the 100% online players in the space of just a few years.
The bank can now pride itself on offering one of the most comprehensive customer paths on the market, combining innovative digital channels with first-rate human expertise. A winning strategy that should inspire many financial institutions still lagging behind in the digital arena!
Guide your employees with K-NOW :
At Knowmore, we optimize theassimilation business software. Like BNP Paribas, which had to rethink its practices during its digital transformation, we can help you manage the changeover to new tools for your teams.
Our methodology and K-NOW solution guarantee rapid adoption of the new tools by your employees.
Find out how Knowmore's K-NOW helps BNP Paribas advisors assimilation their "mes comptes" mobile application on a daily basis .