Introduction
As we explained in the previous blog, there are three main approaches for your bank's progressive modernization journey: journey-based, segment-based, and headless. The right one depends on your bank's size, goals, and resources.
For now, let's explore the journey-based approach so you can decide if it's right for your bank.
What is the journey-based approach to progressive banking modernization?
Journey-based progressive modernization means picking one customer journey — like onboarding — and modernizing it end-to-end. It's narrower in scope than the segment-based approach, but that focus is exactly what makes it powerful. Research shows that superior, customer-centric onboarding journeys alone can drive a 40% higher conversion rate — proof that the right journey, modernized well, delivers real business impact.
The best journey to start with is unique to your bank. Make that decision only after performing a comprehensive impact scan of your most critical customer journeys. This gives you a health map — including the revenue or cost impact of each journey — so you know exactly where to focus first.
Your impact scan should cover:
- Points of greatest friction: Where do customers drop off or disengage?
- Customer priority: Which journeys matter most to the people you serve?
- Business impact: What's the revenue or cost opportunity tied to each journey?
Did you know that
banks that allocate at least 15% of their transformation budgets to customer-centric initiatives are more likely to succeed, according to recent research.
Remember our advice about taking an outside-in approach. No one wants services pushed on them, regardless of how flashy they may be. Compile data-driven, customer-centric insights before you proceed with the modernization itself.
Why should I select a journey-based approach?
The journey-based approach delivers clear, measurable business value because every decision traces back to real customer data and defined outcomes. When you've done the impact scan, you're not guessing — you're executing against a proven opportunity.
This approach is also built for risk mitigation. A modular, journey-by-journey method beats the big-bang approach every time. You stay agile, respond to market shifts, and stack early wins into a growing business case.
Those wins compound over time:
- Confidence: Early results prove the model works internally and to stakeholders.
- Momentum: Each completed journey funds and justifies the next.
- Scale: You expand your modernization roadmap journey by journey, ideally on a common platform model — more on that in the next blog.
The segment-based approach to progressive banking modernization
Next up: the segment-based approach — the fastest way to cut through technical debt and accelerate innovation. After that, we'll cover the headless method, a platform-first approach that strips complexity out of your core channels. Two very different paths — both worth understanding before you commit to a direction.
For more information, check out our Banking Reinvented podcast, where Backbase Founder/CEO Jouk Pleiter dissects similar topics alongside Tim Rutten, EVP/Chief of Staff, and other digital leaders. Stay tuned as they chat about everything from progressive modernization to decomposing your bank's complexity.
