Change Management Principles Crucial for Cooperative Banks

Cooperative Bank Managements Should Give Adequate Consideration for Having a Change Management Strategy:

Change management has become highly important for cooperative banks in the face of the competition they have from new age banks like payments banks and small finance banks. Nowadays change management principle is more effective in the case of banks going for technology upgradation or digital transformation. Having a clear IT strategy policy is a key factor for establishing a competitive advantage. It can determine the success of the failure of a bank’s progress.

The most important thing in introduction of any new technology or digital products is to convince the management to adopt the same since generally the cost may be one of the main concerns. Here come the change management principles. Simply put, it means change in thinking among the executives, especially those at the board level, believing in the adoption of digitally oriented technology and introducing new business products to be more competitive.

Most of the time, the younger generation in the banks will readily opt for new technologies like digitally enabled banking services, but there will be reservations on the part of the top management about its viability and cost. While small banks may not be able to adopt new technologies due to cost consciousness, it will be necessary for them in order to keep the existing customers from switching to other banks.