Banks are facing tremendous shifts — in their business models, regulatory requirements and the competitive landscape. To thrive, they need to rethink the traditional value chain and their organization’s place in it. Tom Hetterscheidt, chief technologist for the banking and capital markets industry and a Distinguished Engineer at DXC Technology, shares key questions banks should consider as they navigate their transformations. For a more in-depth look at how banks can differentiate themselves with a digital platform, read DXC’s position paper on digital banking.

1. A self-assessment should be the first step in your digital journey.

When a financial services organization is ready to transform itself for the new digital value chain, start with a self-assessment. Ask: What’s your current state? Where do you excel? Where are your opportunities for partnerships? Are there services you could offer others? Where are your silos, in terms of both data and organization? Which geographies do you serve, and how might that change in the future?

2. Expect competitors to play a key role in the digital value chain.

New competitors — including FinTechs, nonbank payment services and digital-only banks — are transforming the industry. So, your second step should be to analyze your competitors. Who’s out there? What are their capabilities? But also ask: Could any of them become your partners?

3. Be ready to partner with these new competitors.

This is particularly true in cases where those competitors can offer services cheaper or faster than you can, and are willing to partner for your greater reach. Open APIs can help. This way, you can stitch together a passel of services from multiple suppliers, then present them to customers under your single bank brand.