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Financial Institutions

As digitization continues to transform financial services—with increasing expectations for better, more integrated experiences—BCG helps global and regional institutions build for the future, using digital innovations to drive fundamental change. Banks must transform into bionic organizations that serve customers in ways the financial world has barely begun to envision.

Our Services for Financial Institutions

Despite margin pressure, financial institutions are being challenged to do more for customers and clients in every segment. Whether the goal is to meet new expectations by integrating environmental, social, and governance considerations into financial services strategy or to set a new vision for the digital future, BCG helps financial institutions make the transformative moves necessary to meet today’s challenges—and prepare for tomorrow’s.

How BCG Helps Create a New Digital Future for the Financial Industry

BCG’s work in the financial services industry—nearly 4,000 engagements over the past five years—has deepened our financial sector know-how and solidified our predictions for what comes next, allowing us to develop advanced sector models, benchmarks, proprietary databases, and tools for meeting strategic challenges across all segments.

Applying our core capabilities in business strategy, value creation, customer journeys, sustainability, M&A, post-merger integration, emerging markets, and innovation strategy, we’ve undertaken both highly targeted and large-scale, end-to-end business transformation in financial institutions. Our big plays in digital include improving personalization, deepening analytics, advancing technology in operations, increasing efficiency, and mitigating risk.

Front-to-Back Digitization in Financial Services

Financial institutions have placed big bets on digital, but many have yet to see healthy returns, for several common reasons: Companies may not tie improvements in the customer experience to back-end operations. They may automate all manual back-office functions rather than eliminate unnecessary ones altogether. Technology upgrades may not line up with overall business goals. Companies may spread spending across too many disparate upgrades, yielding marginal returns.

BCG’s front-to-back digitization approach addresses these and other challenges head-on. It provides a proven path to successful digitization in financial services, helping clients’ efforts pay off faster.

BCG’s Approach to Front-to-Back Digitization

It’s a five-step process:

  • Define. Setting internal and external targets clarifies a transformation’s vision and the plans needed to execute it. Thousands of potential business cases are collapsed into a finite set of well-defined end-to-end value streams.
  • Design. Creating a future-proof, simplified product and experience that covers both front- and back-end processes yields true innovation rather than incremental change.
  • Digitize. Modernized digital and data platforms address challenges posed by legacy technology and embed analytics and automation into processes.
  • Deliver. Upskilling and continuous cross-functional teaming help break down siloed work, which improves workforce performance and productivity.
  • Direct. New ways of working establish a direct link between collaboration and monetization of benefits.

BCG’s experts in digitization in financial services use proprietary diagnostics, a well-proven playbook, benchmarks, and client input to uncover opportunities to improve digitization. Consultants combine deep industry knowledge with relevant capabilities in customer journey, digital and data platforms, operations, people and organization, and risk management.

How Our Front-to-Back Digitization Approach Delivers Value

Value accrues through:

  • Customer Excellence. A simpler, faster, frictionless customer journey boosts conversion rates, engagement, and loyalty.
  • Colleagues’ Experience. New ways of working and empowered teams speed decision making and provide opportunities for upskilling to increase employee engagement.
  • Cost Optimization. Making processes significantly more efficient reduces implementation costs, and it enables rapid updates, improves the “first time right” rate, and increases reusability and consistency.
  • Control Uplift. System-driven monitoring places controls further upstream, which makes risks more visible, improves compliance, and reduces cycle times.

BCG clients around the world have used the front-to-back digitization approach to create transformations with substantial, lasting impacts:


Reduction in operating costs at a leading Indian bank that BCG worked with to digitize processes; among the improvements was a 90% reduction in cycle times across multiple value streams, which led to greater efficiencies and scalability


Minimum expected revenue increase at a leading Asia-Pacific bank after BCG helped it transform multiple value streams, fueling strong improvements in customer experience and delivery


Faster delivery of key consumer products at a major European bank after BCG helped it transform its customer journey and adopt new ways of working to focus on customers, colleagues, and costs; improved spending efficiencies led to a 50% drop in cost per sale


Direct revenue increase at a US regional bank that collaborated with BCG on a customer journey transformation spanning multiple offerings, including mortgages and commercial credit cards

Contact us at for more information on how we can help you make the most of your financial institution’s digitization efforts.

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Financial Institutions