The banking industry is going through a massive transformation due to digital disruption. In today’s fast-paced and highly competitive environment, traditional banking practices are no longer sufficient to meet the growing demands of customers.  


To stay relevant and thrive in this digital era, banks must embrace technological advancements and adopt a product-driven organizational structure. In fact, in a recent study conducted by Deloitte, it was found that 71% of digitally mature organizations are more likely to have a strong alignment between IT and business goals.  

In today’s blog, we’ll discuss the concept of digital transformation in banking and explore the significance of product-driven organizations. We will also talk about how to organize delivery teams as product-driven entities and the key elements that lead to successful digital transformation in the banking sector. Let’s get started! 

Understanding Product-Driven Organisations 

A product-driven organization is one where the focus is shifted from project-based teams to product-based teams. Instead of working on short-term projects, teams are formed around specific products or services. This approach aligns the entire organization’s efforts toward the successful development, enhancement, and maintenance of a product throughout its lifecycle.  

For a bank’s IT department that is driven by apps and technology, transitioning to a product-driven organization is essential to integrate with business seamlessly. 

Advantages Of Becoming A Product-Driven Bank 

By becoming a product-driven organization, a bank can enjoy the following benefits: 

      1. Enhanced Customer Experience 

    By organizing teams around products, banks can deliver a seamless and consistent customer experience. This approach reduces handovers between teams, minimizes communication gaps, and results in quicker issue resolution. 

        1. Faster Time-to-Market 

      Product-driven organizations are inherently more agile and can respond faster to market changes. This agility allows banks to bring new products and features to market quickly, gaining a competitive edge. 

          1. Improved Product Quality 

        With dedicated teams responsible for their products’ entire lifecycle, there is a stronger focus on quality. Teams take ownership of the end product, resulting in better design, development, and testing practices. 

            1. Data-Driven Decision Making 

          Product-driven organizations rely on data to drive decision-making. By measuring product performance and customer feedback, banks can make informed decisions, optimize product features, and prioritize development efforts effectively. 

              1. Employee Empowerment and Motivation 

            Working in product-based teams gives employees a sense of ownership and autonomy. This empowerment fosters creativity, motivation, and innovation among team members. 

            How to Organize Delivery Teams as Product-Driven 

            The following strategies will help you to transition to a product-based organization easily: 

                • Product-Centric Structure 

              Instead of organizing teams around technologies or projects, banks should structure teams around specific products or customer segments. Each team is responsible for the end-to-end development and maintenance of their assigned product, fostering a sense of ownership and accountability. 

                  • Cross-Functional Collaboration 

                Effective collaboration is crucial for product-driven organizations. The teams should consist of professionals from various disciplines, including developers, designers, product managers, and business analysts. This ensures a holistic approach to product development, incorporating both technological expertise and business understanding. 

                    • Customer-Centricity 

                  Placing customers at the heart of product development is paramount. Teams should continuously collect feedback and conduct market research to understand customer needs and pain points, helping them build products that truly resonate with the target audience. 

                      • Agile Methodologies 

                    Adopting agile methodologies such as Scrum or Kanban allows banks to respond quickly to changing market dynamics and customer demands. Agile promotes incremental development and frequent iterations, enabling teams to continuously improve products. 

                        • Clear Product Vision 

                      Each delivery team must have a clear and shared vision for their product. This ensures everyone is aligned towards a common goal and makes it easier to prioritize tasks and make informed decisions. 

                      Things To Focus On For A Successful Transformation 

                      The key to successful transformation is to consider the following factors: 

                          • Cultural Shift 

                        Transforming a traditional bank into a product-driven organization requires a cultural shift. The management must instal a culture of collaboration, innovation, and customer-centricity across the entire organization. 

                            • Leadership Support 

                          Successful digital transformation needs strong leadership support. Top-level executives must champion the change and provide the necessary resources and guidance to ensure smooth implementation. 

                              • Talent Development 

                            Banks need to invest in upskilling their workforce to align with the product-driven approach. Training employees in agile methodologies, product management, and customer-centricity will be crucial for the success of the transformation. 

                                • Integration of Business and IT 

                              For a bank that heavily relies on technology, seamless integration of business and IT functions is essential. Regular communication, joint planning sessions, and shared KPIs will help align both sides effectively. 

                                  • Continuous Improvement 

                                Digital transformation is an ongoing process. Banks must embrace a culture of continuous improvement, learning from failures, and iterating on their products and processes to stay relevant and competitive. 

                                Wrapping Up 

                                Digital transformation in banking is no longer an option but a necessity. Embracing a product-driven approach and restructuring delivery teams around products will help banks drive innovation, enhance customer experiences, and achieve sustainable growth. As the global digital banking market is projected to reach $30.1 billion by 2026, embracing a product-driven approach becomes imperative for banks to thrive and succeed in the dynamic landscape of tomorrow.