P&C Global Practices: AI, Data, & Cognitive Sciences, Digital Transformation, IT Transformation, Organization & Human Capital, Strategy & Innovation
Reinventing Banking for the Digital-First Customer
When one of Europe’s largest financial institutions with over €700 billion in assets faced declining market share among digital-native customers and mounting pressure from fintech disruptors, they partnered with P&C Global to orchestrate a comprehensive omnichannel banking transformation that would fundamentally reimagine how 190,000 employees serve customers across 64 countries. The resulting five-year engagement from 2014-2019 delivered remarkable outcomes: a 250% increase in mobile banking users, digital sales growth from 10% to 35% of total revenue, and recognition as the top-rated French bank for mobile banking experience—demonstrating that traditional financial institutions can successfully compete in the digital age through strategic transformation leadership.
This transformation required more than technology upgrades; it demanded a complete reinvention of the banking experience across every customer touchpoint. P&C Global’s cross-functional team, leveraging expertise from our AI-powered analytics and cognitive computing solutions and organizational transformation and workforce development practices, guided the institution through a sophisticated journey that balanced technological innovation with fundamental cultural change. The engagement proved that successful omnichannel banking extends beyond digital channels—it requires orchestrating a seamless experience where customers move effortlessly between physical branches, mobile apps, online platforms, and emerging payment technologies while receiving consistent, personalized service at every interaction point.
Competing in a Fintech-Disrupted Marketplace
The transformation engagement began against a backdrop of significant market disruption. Neo-banks and fintech startups were capturing younger demographics with superior digital experiences, while technology giants like Apple, Google, and Amazon were expanding into financial services innovation. Our client, despite their substantial assets and established market position as Europe’s second-largest bank, recognized that incremental improvements would be insufficient. They needed a partner capable of architecting a complete omnichannel banking platform that would leapfrog competitors while preserving the trust and stability their 14 million customers expected.
P&C Global assembled a multidisciplinary team of 45 senior consultants spanning our Digital Transformation, AI, Data & Cognitive Sciences, Organization & Human Capital, Strategy & Innovation, and IT Transformation practices. This integrated approach ensured that technology initiatives aligned with human capital development and strategic business objectives. Our engagement model combined embedded transformation teams within the client’s organization with specialized expert resources deployed for critical initiatives. The scope encompassed everything from cloud infrastructure migration and AI implementation to training nearly 200,000 employees and redesigning the entire customer journey across all banking channels.
The transformation unfolded in three strategic phases. Phase One (2014-2015) focused on launching the client’s first 100% digital banking platform while simultaneously beginning organizational change management. Phase Two (2016-2017) accelerated technology adoption with AI integration, contactless payment solutions, and the innovative “phygital” strategy that merged physical and digital banking experiences. Phase Three (2018-2019) consolidated gains through cloud migration, advanced analytics deployment, and embedding new capabilities throughout the organization. This phased approach allowed for continuous learning and adjustment while maintaining business continuity—critical for an institution processing millions of daily transactions.
Legacy Barriers in a Fintech-Driven World
The Imperative for Radical Banking Transformation
The financial services industry in 2014 faced an inflection point that threatened established banking models. Customer expectations, shaped by seamless experiences from technology companies, had fundamentally shifted. Banking customers demanded omnichannel experiences that allowed them to start a mortgage application on their phone, continue it on their laptop, and finalize it in a branch—all without repeating information or losing context. Our client’s legacy systems, built for a branch-centric era, couldn’t deliver this level of integration that modern financial services consulting addresses.
Market analysis revealed sobering trends. Among customers aged 18-35, traditional banks were losing 3-5% market share annually to digital-first competitors. Customer acquisition costs through traditional channels had increased 40% over five years, while digital acquisition costs for neo-banks were 70% lower. Perhaps most concerning, Net Promoter Scores for traditional banks averaged -5 to +10, while digital challengers achieved scores of +50 or higher. The client’s own internal research showed that 67% of their customers used competitor apps for at least one financial service, creating significant risk of complete customer defection.
Legacy technology infrastructure presented formidable obstacles to transformation. The institution operated 47 different core banking systems across various countries and business lines, many dating from acquisitions over decades. Customer data existed in silos, preventing the unified view necessary for personalized omnichannel banking solutions. Manual processes dominated back-office operations, with loan approvals taking 7-14 days compared to the minutes or hours offered by digital competitors. The technology stack, primarily mainframe-based, couldn’t support modern API-driven architectures or real-time processing requirements that enterprise digital transformation services now enable.
Organizational Barriers Compounded Technical Challenges
Cultural resistance to change permeated the organization. Many employees, particularly in retail banking, viewed digital transformation as a threat to their roles rather than an opportunity for enhancement. Middle management, comfortable with established processes and metrics, often became transformation bottlenecks. The institution’s risk-averse culture, while appropriate for financial stewardship, inhibited the experimentation and rapid iteration necessary for digital innovation—challenges that human capital transformation experts are uniquely positioned to address.
Regulatory compliance added layers of complexity unique to financial services transformation. European data protection regulations, payment services directives, and anti-money laundering requirements all needed integration into new digital processes. The institution faced potential fines reaching 4% of global revenue for compliance failures, making regulatory alignment non-negotiable. Additionally, different countries maintained varying regulatory frameworks, requiring localized approaches within the overall transformation strategy that global management consulting expertise could navigate.
Competitive dynamics created urgency while limiting strategic options. Direct competitors were investing billions in their own digital transformations, creating an arms race for technological capability. Meanwhile, unencumbered fintech startups could launch innovative products in weeks, not the years traditional banks required. The institution needed to transform rapidly enough to remain relevant while maintaining the operational stability that billions in daily transactions demanded. This delicate balance between innovation speed and operational reliability became a central challenge throughout the engagement.
Our Approach: From Digital Upgrade to Phygital Reinvention
Pioneering the “Phygital” Banking Model through Integrated Transformation
P&C Global’s approach centered on creating a truly integrated omnichannel banking strategy that transcended traditional digital transformation models. Rather than viewing digital and physical channels as separate entities, we architected a “phygital” ecosystem where every touchpoint reinforced a unified customer experience. Our methodology, refined through extensive financial services consulting experience, began with comprehensive journey mapping across 127 distinct customer scenarios, from simple balance inquiries to complex wealth management consultations. This granular analysis revealed that 73% of customers preferred starting transactions digitally but wanted human support for completion—insight that fundamentally shaped our transformation strategy.
We deployed our proprietary Digital Maturity Assessment Framework, developed through our digital transformation practice, across all business units, evaluating capabilities across 15 dimensions including data integration, process automation, customer analytics, and organizational agility. This assessment identified 2,400 specific capability gaps that became the basis for our transformation roadmap. Unlike traditional consulting approaches that impose standardized solutions, we developed a modular transformation architecture allowing different business units to advance at appropriate speeds while maintaining enterprise coherence. This flexibility proved crucial when regulatory changes in certain markets required rapid pivots in implementation strategy.
The technical architecture we designed embraced cloud-native principles while respecting the institution’s security requirements and regulatory constraints. Working closely with the client’s technology leadership and leveraging our IT transformation expertise, we developed a hybrid cloud strategy utilizing private cloud infrastructure for sensitive customer data while leveraging public cloud services for analytical workloads and development environments. Our omnichannel banking platform architecture employed microservices and API-first design principles, enabling the rapid integration of new capabilities without disrupting existing services. We established 340 APIs that exposed core banking functions to digital channels, partner ecosystems, and internal innovation teams, creating the foundation for continuous innovation beyond the initial transformation.
Leveraging AI and Advanced Analytics for Competitive Advantage
Our AI & Data Sciences practice led the implementation of intelligence capabilities that transformed decision-making across the enterprise. We began by consolidating customer data from 47 disparate systems into a unified data warehouse, employing advanced entity resolution algorithms to create golden records for 14 million customers. This foundational work enabled the deployment of machine learning models that delivered personalized product recommendations, achieving 3.7 times higher conversion rates than traditional marketing approaches.
The AI implementation extended far beyond marketing applications. We developed and deployed 92 distinct machine learning models addressing use cases from fraud detection to credit underwriting. Our fraud detection ensemble, combining gradient boosting machines with deep learning approaches, reduced false positives by 67% while catching 23% more actual fraud attempts. For credit decisions, our models incorporated alternative data sources and behavioral analytics, enabling instant approval for 78% of personal loan applications while maintaining risk parameters. These capabilities, powered by cognitive computing and AI solutions, transformed the customer experience—loan decisions that previously took days now occurred in seconds, matching or exceeding fintech competitor speeds.
We established an AI Center of Excellence comprising 50 data scientists and 150 machine learning engineers, creating sustainable capability within the organization. This team didn’t just implement models; they built an entire ML operations infrastructure ensuring models remained accurate and unbiased over time. We implemented continuous monitoring systems that tracked model drift, fairness metrics across demographic groups, and business impact realization. Our governance framework, developed in collaboration with risk and compliance teams and informed by P&C Global’s methodology, ensured AI deployments met regulatory requirements while enabling rapid experimentation and deployment.
Transforming 190,000 Employees into Digital Banking Champions
P&C Global’s Organization & Human Capital practice recognized that technology alone wouldn’t deliver transformation success—the institution’s nearly 200,000 employees needed to become active participants and champions of change. We designed a comprehensive capability building program that went beyond traditional training to fundamentally reshape mindsets and behaviors. Our approach segmented the workforce into six personas based on role, digital readiness, and transformation impact, allowing targeted interventions that addressed specific needs and concerns.
The transformation began with leadership alignment through our Executive Digital Immersion Program. Over three months, we guided the top 200 executives through intensive experiences including fintech company visits, design thinking workshops, and reverse mentoring with digital natives from within their organization. This leadership transformation, supported by strategic innovation consulting, proved crucial—executives who completed the program championed 4.2 times more digital initiatives than their peers. We established transformation offices in each major market, staffed with change agents who could translate enterprise strategy into locally relevant actions while maintaining global coherence.
Our training methodology embraced modern learning principles, delivering bite-sized, role-relevant content through mobile platforms that employees could access anywhere. Rather than forcing employees into lengthy classroom sessions, we created 2,400 micro-learning modules covering everything from basic digital literacy to advanced data analytics. Gamification elements drove engagement, with employees earning badges and recognition for skill development. By year three, 94% of employees had completed foundational digital skills training, with 31,000 achieving advanced certifications in specialized areas like agile methodology, data analysis, and customer experience design—demonstrating the impact of comprehensive workforce transformation.
The cultural transformation extended beyond skills to fundamental ways of working. We introduced agile methodologies starting with 50 pilot teams, eventually scaling to 1,200 agile squads across the organization. These teams, comprising 8-10 members from diverse functions, owned specific customer journeys end-to-end. This structural change broke down silos that had inhibited innovation for decades. We also established innovation labs in five major cities where employees could experiment with emerging technologies, prototype new services, and collaborate with fintech partners. These labs generated 147 new product ideas, with 23 reaching full production and contributing €78 million in new revenue by program end.
Results That Redefined Market Leadership in Mobile Banking
Remarkable Customer Acquisition and Engagement Transformation
The transformation delivered exceptional measurable outcomes that exceeded initial projections across all key performance indicators. Most notably, the institution achieved a 250% increase in mobile banking users, growing from 2.3 million to 8.1 million active monthly users over the five-year engagement period. This growth dramatically outpaced the industry average of 87% during the same timeframe. The newly launched digital-only banking platform attracted 1 million customers within its first 18 months, with particularly strong adoption among the coveted 18-35 demographic where the institution had been losing market share—a testament to P&C Global’s financial services expertise.
Customer engagement metrics demonstrated the success of our omnichannel banking solutions. Average customer touchpoints per month increased from 3.2 to 11.7, indicating much deeper engagement across channels. More importantly, cross-channel journeys—where customers seamlessly moved between digital and physical touchpoints—increased by 430%. The Net Promoter Score for digital channels reached +57, surpassing many fintech competitors and ranking first among traditional banks in their primary market. Customer attrition rates decreased by 34%, while the lifetime value of digitally active customers increased by 67% compared to traditional-channel-only customers.
Digital sales transformation represented perhaps the most significant business impact. Digital channels accounted for 35% of total product sales by 2019, up from just 10% at engagement start. Certain product categories showed even more dramatic shifts—63% of personal loans, 47% of credit cards, and 71% of savings accounts were opened through digital channels by program end. The cost per acquisition through digital channels dropped to €24, compared to €165 for branch-originated accounts. This digital sales growth contributed €1.9 billion in incremental annual revenue while reducing distribution costs by €340 million annually—results that showcase the value of comprehensive digital transformation.
Operational Excellence Through Intelligent Automation
The transformation fundamentally restructured operational capabilities, delivering efficiency gains that freed resources for innovation and customer service. Processing time for loan applications decreased by 91%, from an average of 7 days to just 15 hours for complex cases and instant approval for 78% of applications. Account opening, previously requiring branch visits and multiple days, could be completed entirely through mobile devices in under 4 minutes. These improvements weren’t achieved by simply digitizing existing processes—we completely reimagined workflows using AI-driven decision engines and robotic process automation powered by advanced AI and data science capabilities.
Our AI implementation delivered substantial risk management improvements alongside operational gains. Fraud losses decreased by 41% despite transaction volumes increasing by 67%, demonstrating the effectiveness of our machine learning models. The false positive rate in fraud detection dropped from 3.2% to 1.1%, significantly reducing customer friction while maintaining security. Credit loss rates improved by 23 basis points through better underwriting models, generating €127 million in annual risk-adjusted revenue improvement. Compliance costs decreased by 18% through automation of know-your-customer processes and transaction monitoring.
Back-office transformation complemented customer-facing improvements. We automated 67% of previously manual processes, eliminating 14,000 hours of repetitive work daily. This automation didn’t result in widespread job losses—instead, we successfully reskilled affected employees for higher-value activities through strategic workforce transformation. Document processing accuracy improved to 99.7% through optical character recognition and natural language processing implementations. Straight-through processing rates for payments increased from 62% to 94%, reducing operational costs by €89 million annually while improving transaction speed and reliability.
Sustaining Market Leadership Through Omnichannel Innovation
The transformation established capabilities that continue generating value beyond the initial engagement. The institution’s new omnichannel banking platform processes over 100 million transactions daily with 99.99% availability, matching the reliability of established tech giants. The modular architecture enables new feature deployment in days rather than months, with 340 APIs facilitating rapid integration of fintech partnerships and third-party services. Since transformation completion, the institution has launched 47 new digital products and services, maintaining innovation momentum without P&C Global’s direct involvement—demonstrating the lasting impact of enterprise transformation expertise.
Market recognition validated the transformation’s success. The institution received 23 industry awards during and immediately after the transformation, including “Digital Bank of the Year” and “Best Omnichannel Banking Experience.” Their digital-only subsidiary became the fastest-growing digital bank in Europe, reaching profitability 18 months ahead of projections. Stock market performance reflected this success, with share price appreciating 47% during the transformation period, compared to 22% for the banking sector index. Analyst reports consistently cited digital capabilities as a key competitive differentiator and reason for buy recommendations, validating P&C Global’s approach to financial services transformation.
The human capital transformation created lasting organizational capabilities. Employee engagement scores increased by 29 percentage points, with digital readiness metrics showing 87% of employees feeling confident in their digital skills. Internal mobility increased by 156% as employees moved into new digital roles, reducing external recruitment costs by €34 million annually. The institution successfully attracted top technology talent, hiring 2,100 technologists and data scientists who previously wouldn’t have considered traditional banking careers. Innovation velocity metrics showed a 340% increase in ideas generated and 280% improvement in concept-to-launch timing, demonstrating embedded innovation capability fostered through organizational excellence initiatives.
Long-term financial impact exceeded business case projections. The transformation generated €4.7 billion in cumulative value through revenue growth and cost reduction, against a total investment of €1.3 billion, delivering a 3.6x return. Operating efficiency ratio improved from 68% to 52%, best-in-class for European universal banks. The institution achieved these results while maintaining regulatory compliance excellence, with zero material findings in subsequent regulatory examinations. Most importantly, the transformation positioned the institution for continued success, with digital channels projected to generate 60% of revenues by 2025.
The Future of Omnichannel Banking Leadership
The successful transformation of one of Europe’s largest financial institutions into an omnichannel banking leader demonstrates that established banks can effectively compete with digital disruptors through comprehensive, well-orchestrated change programs. P&C Global’s integrated approach—combining technological innovation with organizational transformation—delivered measurable outcomes that exceeded expectations while building sustainable competitive advantages. The engagement proved that true omnichannel banking success requires more than implementing new technologies; it demands reimagining every aspect of how banks create and deliver value to customers.
The transformation’s enduring impact extends beyond impressive metrics to fundamental market repositioning. An institution once struggling to retain younger customers now leads in digital engagement across all demographics. The seamless banking experience created through our phygital strategy became the industry benchmark, inspiring similar transformations across European financial services. Perhaps most significantly, the capability building and cultural change ensure continued innovation and adaptation, positioning our client to thrive amid ongoing industry disruption through the foundation established by P&C Global’s comprehensive methodology.
For financial services executives contemplating similar transformations, this engagement offers crucial insights. Success requires unwavering leadership commitment, significant investment in human capital alongside technology, and patience to pursue comprehensive change rather than quick fixes. The rewards—as demonstrated by our client’s 250% mobile user growth, digital sales expansion to 35%, and transformation into their market’s digital leader—justify the effort and investment required. P&C Global’s proven expertise across strategy, technology, and human capital positions us uniquely to guide financial institutions through this critical journey.
Transforming Financial Institutions into Omnichannel Banking Leaders
P&C Global’s proven methodology and deep expertise across AI, data sciences, and organizational transformation can help you achieve similar remarkable outcomes. Our financial services practice combines industry knowledge with cutting-edge capabilities in digital transformation, AI and cognitive sciences, and organizational excellence to architect your institution’s digital future while building sustainable competitive advantage.
