Agile methodologies in digital banking: Theoretical underpinnings and implications for customer satisfaction

This paper delves into the theoretical underpinnings of agile methodologies and investigates their potential to enhance customer satisfaction in digital banking. Theoretical foundations of agile methodologies draw on several key theoretical frameworks complexity theory, complex systems, like digital banking ecosystems, exhibit emergent properties. Traditional linear approaches struggle to predict these. Agile embraces iterative development cycles and adaptability to changing requirements, acknowledging this complexity lean thinking, derived from manufacturing, lean thinking prioritizes eliminating waste and maximizing customer value. Agile translates this by focusing on short development sprints, prioritizing features with the highest customer impact, and minimizing unnecessary functionalities customer co-creation, traditional models often distance customers from the development process. Agile emphasizes customer co-creation, actively involving them in design and testing. This fosters a deeper understanding of customer needs and leads to more relevant and satisfying digital banking experiences. Agile practices in digital banking. Agile methodologies encompass diverse practices. This visual management system focuses on workflow optimization. Promoting a continuous flow of work from development to deployment user stories and acceptance criteria, User Acceptance criteria define the specific conditions a feature must meet for user approval. These practices ensure features align with customer needs and expectations. Agile methodologies hold significant promise for enhancing customer satisfaction in digit banking. Agile development allows banks to deliver new features and functionalities faster, keeping pace with evolving customer demands. Customers benefit from quicker access to innovative solutions that address their financial needs. This results in digital banking experiences that are intuitive, efficient, and cater to specific user needs. Increased Innovation, The iterative nature of agile fosters continuous learning and experimentation. Banks can test new features, gather customer feedback, and rapidly iterate upon them, leading to a more innovative and dynamic digital banking experience. Improved transparency and trust, agile practices promote open communication and collaboration between development teams and customers. Customers are kept informed of updates and have a voice in shaping the development process, fostering trust and a sense of ownership.