Leadership in digital banking and transformation requires a blend of strategic vision and technological acumen. Skilled leaders navigate through the dynamic digital terrain, utilizing data-driven perspectives to stimulate creativity and expansion. They encourage a culture of experimentation and continuous growth by motivating teams to embrace agile approaches. The ability to keep ahead of trends and adopt new technology guarantees that businesses can compete in the industry of today’s developing century.
This is where Ozgur Koc stands out, leading as a Head of Digital Banking and Transformation at Credit Europe Bank N.V. Ozgur began his career as a software developer and later earned an MBA degree. Combining his technical background with business acumen has been his primary strength. He drives the digitalization roadmap across various lines of business and defines the digital strategy for the bank. This involves not only delivering top-notch digital tools for the customers but also equipping the employees with the necessary digital tools and automation to enhance their efficiency and streamline daily business activities and operations.
In this process, Credit Europe Bank N.V. has developed a strong presence in emerging economies, allowing it to build specific experience and expertise. This identity is reflected in its core values of dynamism, diversity, and expertise. Adhering to these allows the bank to meet the challenges of today’s volatile, uncertain, complex, and ambiguous world. With dynamism in its DNA, the bank is well-equipped to deal with rapid changes in the banking sector, particularly in emerging economies.
Let’s delve into the impactful journey of Ozgur in the Digital Banking sector:
The Most Significant Moment
The most pivotal moment in his career came in 2019 when they initiated the digital transformation at Credit Europe Bank N.V. Deciding to implement the digital banking platform in-house was a significant milestone. This experience was highly educational for both him and his organization. Ozgur states, “Setting up an entire team from scratch and implementing a cloud-native digital platform with a microservice architecture were major decisions for a bank of our size.”
Pioneering Digital Innovations
Cloud computing and Software as a Service (SaaS) are the digital innovations Ozgur is most proud of, as they have significantly impacted the banking industry. Traditionally, the banking sector relied on mainframes and extensive IT systems, which served as entry barriers for competitors, much like banking licenses. However, today, any startup can quickly serve customers within six months by leveraging banking-as-a-service software on the cloud. While this poses a competitive threat to traditional banks, it also opens up new opportunities for the industry. Ultimately, it empowers customers and drives innovation.
Fostering Innovation in Teams
Ozgur says, “Defining my leadership style is challenging, as I haven’t given it much thought. However, I would describe myself as a servant leader who cultivates my team while being willing to make sharp and bold decisions when necessary.” He believes in not waiting too long for the perfect decision but moving forward with the best available information. Accepting potential failure scenarios from the start and creating a remediation plan for quick action is crucial.
At the bank, they follow and monitor developments not only within our industry but also in various emerging technologies. As a bank of this size, they can’t pioneer every technology, but they assess potential impacts and opportunities. He strongly believes in questioning the status quo while managing feasibility, which aligns with traditional banks.
His team drives innovation by staying informed about developments and assessing their impact on their current business strategy. Instead of seeking leapfrog advancements, they focus on incremental improvements in their digital operations and channels to achieve their business KPIs.
Addressing Challenges through Digital Solutions
After the financial crisis and the prolonged low-interest environment, many fintech companies and new financial players entered the industry. They have seen the rise of neo-banks like Nubank, Revolut, and Monzo; payment companies like Wise, Adyen, and Square; banking-as-a-service providers like Solaris, Marqeta, and Griffin; and big tech companies like Apple, Google and Tencent. However, with the recent increase in interest rates, we are witnessing profitability challenges across the board.
Many neo-banks are struggling to become profitable and several banking-as-a-service providers have closed. Recently, Apple shut down its BNPL solution, and Goldman Sachs exited its agreement with Apple Credit Card. Additionally, cryptocurrency has not significantly impacted payments, serving more as an investment asset. As a result, they see numerous closures, mergers, and consolidations across nearly every vertical in the industry. Growth is no longer the primary KPI; profitability is now the focus.
To address these challenges, organizations must leverage digitalization to drive profits and help business lines create new digital business models. Automation is a key area they are focusing on to achieve this. By automating processes, they can enhance efficiency, reduce costs, and ultimately improve profitability.
Shaping Future Industry Trends
Ozgur says, “If I don’t mention AI in this context, I believe all readers will be disappointed 🙂 AI is already being utilized in credit risk modeling and propensity models in many banks, so we can refer to these applications as “traditional AI.” However, I believe Generative AI will significantly impact how we work in general. Rather than fearing job loss, I think the productivity of every employee will increase significantly over the next decade.”
With AI support, they will develop new digital products more quickly, prepare complex credit packages more efficiently, and resolve customer complaints within minutes without having to circulate cases internally between departments. Ultimately, Ozgur foresees a significant productivity boost across all departments in an organization. The key challenge will be integrating AI into their workflows effectively.
Another technology he believes will shape the future is tokenization, especially in Trade Finance. They are closely following developments in distributed ledger technology and its application in digitizing trade documents. This technology has the potential to revolutionize Trade Finance by increasing efficiency and reducing the reliance on physical documentation.
Essential Qualities for Leading Digital Innovation
Their top priorities include removing paper dependencies, reducing processing times, and adding value to all stakeholders, especially their customers. They strive to enable accessibility for every member of society. By focusing on these areas, they ensure that their digital initiatives not only enhance operational efficiency but also contribute to sustainable development and create a positive societal impact.
Monitoring Emerging Digital Trends and Technologies
Digitalization is a vibrant field, with new and groundbreaking developments emerging constantly. To stay ahead, it is essential to find valuable content and learn from the experiences of other leaders. Magazines like The Silicon Leaders play a crucial role in this regard, providing insights and updates on the latest trends and technologies.
Suggestions for Future Leaders in Advancing Digital Revolution
Ozgur emphasizes, “Be humble and avoid acting as if you already know everything or relying solely on past experiences.” Developments in digital transformation are highly unpredictable and occur at a rapid pace. For projects, especially in digital transformation, the main goal should be to calculate a clear ROI rather than using buzzwords like AI and automation. Ultimately, the role is to demonstrate the clear impact and ROI of these technology implementations.
