Importance of Product Owner in Australia Banking Industry

Australian banking industry has undergone a significant transformation in the last few years. The reasons behind the transformation are technological innovations and growing customer expectations. In modern organizations, the Product Owner (PO) role has become essential in driving the development and success of innovative products. The product owners can also drive the Australian banking sector towards innovation and satisfaction.  

This blog explores the importance of a Product Owner in Australia's banking sector and how they help shape the industry’s future.

Who is a Product Owner?

The Product Owner (PO) role is vital in the Agile framework since the PO is responsible for prioritizing product development and managing the process or service. The PO is intended to work closely with cross-functional teams, such as developers, designers, marketers, and business analysts. Cooperative work from all team members is needed to ensure that the product meets customer needs and adds value to the business. 

In the banking industry, the PO role has scope, and their responsibility has led to and can lead to many more changes. The critical responsibility of the Product Owner is to ensure that new banking products are customer-centric, satisfy the product's intent, and align with the business’s goals.

What is the Current Scenario of Australia's Banking Industry?

Australia’s bank is currently in a situation with a reasonable growth rate in the upcoming years. The world is presently experiencing digital transformation, spreading to the Australian banking industry. 

The industry is navigating through a phase of digital disruption, which results in some challenges to the traditional banking models. Factors like fintech startups and innovations like artificial intelligence (AI), blockchain, and cloud computing are significant revolutions in the banking industry. 

Nowadays, customers expect personalized and seamless banking experiences that can be accessed even through their mobile devices. Traditional banks are poised to adopt this innovation to stay competitive while ensuring regulatory compliance.

At this point in the transition and adoption of new ideas, the product owner's role is essential. They ensure that the bank's products and services match the needs of its customers. 

Read More: Product Owners Driving Change in USA Manufacturing

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How do Product Owners Drive Innovation in Banking Products?

The product owner's role is adopted to bring innovation to the banking sector. They are responsible for 

1. Analyzing market trends

2. Receiving customer feedback

3. Learning Emerging technologies

After performing all the required actions, the PO must find ways to improve or develop new products. Their deep understanding of customer pain points and strategic market view enable them to create innovative products that drive growth and enhance the customer experience.

Since the banking sector is experiencing a digital shift, product owners have worked towards mobile banking app development and conceptualizing contactless payments. They also work to integrate emerging technologies like AI for chatbots, fraud detection, and predictive analytics into banking products.

Why Does the Australian Banking Industry Need Product Owners?

The demanding situation in the banking sector is a significant reason for the need for product owners. The Australian banking industry has become competitive; banks must improve the process and innovate instantly. The term digital experience has influenced the customer experience and transformed convenience to a great extent. Customer expectations to get such an experience from banks create pressure to develop a quick, flexible, and secure financial service.

Without a dedicated Product Owner, banking product development can become less connected to customers. There are risks of developing a new product that fails to meet customer needs or stand out in features from competitors. 

Product owners are the people who improve product clarity, improve collaboration between teams, and always maintain the product to meet customers' needs. The PO's ability to prioritize product features based on business goals can lead to the success of new banking products.

How Can Growth in the Banking Industry Be Measured?

The banking industry's growth can be measured using different key performance indicators. The KPI must show both financial performance and customer satisfaction. Some common KPIs include:

1. Revenue Growth

When the number of bank customers increases, the amount of money lending increases when depositors reach the bank for long-term deposits. These factors increase banks' revenue, which can be gained through new banking products or services.

2. Customer Acquisition & Retention Rates

When new products are more approachable, the chance of attracting new customers increases. Existing customers will remain if the bank's services are improved through innovation. Thus, the number of new and existing customers should increase simultaneously.

3. Net Promoter Score 

Whenever the customer is satisfied with the service, they tend to recommend it to other customers. This process can increase customer promotion. A frequent review of the recommendation from the customer can be collected to measure this. 

4. Product Usage Metrics

When a new product is introduced, finding the user rate is essential. These factors include how long and how often customers use the products. Whether there is any inconvenience with the products must be analyzed to find success. 

5. Regulatory Compliance

Whenever a new product is to be developed, the scope of the product must meet the regulatory requirements. The regulatory compliance may be from the government or the deciding authority regarding the actions involved in the financial sectors. 

By collecting all the mentioned KPI metrics, Product Owners can work with the upgradation of the product to improve customer experiences and improve the growth of the bank.

Also Read: Product Owners Boost Economy in the UK

What are the Roles of Product Owners in the Banking Sector

The Product Owner's role is far beyond simply managing products. Their contribution to the banking sector is vast:

1. Market Research

The PO is responsible for doing market research on the latest innovations and customer needs. Only then will the development of new products be relevant to the market. 

2. Roadmap Creation

Formulating the roadmap for the development of the product is important. The PO frames the prioritization of the features and process. Based on the roadmap, a new process or product will be developed.  

3. Stakeholder Communication

PO is responsible for communicating between stakeholders and internal teams. PO must get the idea from the stakeholders, and with the product knowledge, they coordinate with the internal team for development. 

4. Feature Implementation

With complete research, knowing the business goals and customer expectations, the features required will be selected by the PO.

5. Product Launch and Support

PO takes responsibility for the new product launch and collects customer feedback afterward.

The multi-faceted role of PO makes them a vital asset for the Australia Bank industry.

Real-Life Case Studies

Several Australian banks have embraced the role of Product Owners to innovate and transform their offerings.

1. Commonwealth Bank of Australia

Commonwealth Bank of Australia has successfully introduced digital banking products such as the Komplete app, which combines personal banking, superannuation, insurance, and home loans. The CBA product Owners worked closely with cross-functional teams to integrate various services into a mobile app.

2. Westpac

Westpac Bank has also included Product Owners to start innovation in mobile banking. The Bank launched the “Westpac One” app to simplify the banking experience. The app combined personal banking services and investments into one platform. The PO collaborated with the team to make the app user-friendly with new features based on customer feedback.

These case studies highlight the impact of Product Owners in shaping the digital banking landscape and creating products that resonate with customers.

Challenges Faced by Product Owners in the Australian Banking Industry

Even though the Product Owners have more impact on the banking industry, there are some challenges while using the role in the Australian banking industry, including:

1. Regulatory Compliance 

The banking industry is linked with the money of the users, and to avoid any risks in the processes, there are numerous regulatory compliances to follow. The regulation is also updated frequently, and the PO must always be aware that the product meets the revised regulation. This process will require many unexpected changes to the plan and product features. 

2. Balancing Innovation with Security

Innovation and digital transformation are compelling for the users but have security risks. The PO must work closely to detect the risks that may occur or already exist. To build the customer's belief, the product must be secure, and the data used must also be safe.  

3. Cross-Department Collaboration

When a product needs to be developed for the Australian banking industry, multiple teams are involved: development team, testing team, and banking resources team. PO must convey the product requirements to the development team, inform the critical features to be tested rigorously, and contact the banking resource team to work on the workflow and processes required. Collaborating with different departments may be difficult.  

4. Customer Expectations

Based on the latest technology and innovation, customer expectations keep increasing. Like:

• The customer expected a product to check the account balance without visiting the bank.

• They required a method to transfer money anywhere effortlessly.

• Now, customers require all products to handle entire banking activities through a single app.  

Likewise, the customer's expectations increase every time analyzing the complete requirement, and developing a product with such capabilities may be challenging.

Related Blog: What Makes a Great Product Owner? Essential Traits and Skills

Conclusion

Australia's banking sector is a vital industry that is constantly evolving. Product owners have a significant role in making innovation possible, which is needed to improve customer satisfaction and industrial growth. PO develops the required product or innovation after a complete analysis of market, customer requirements, and industrial requirements. PO is a role that works closely to maintain the balance between goals and customer needs. 

Is the product owner a short-term role? Will it be a reliable job in the future? These may be the common questions in your minds. The answer to the questions is that the Product owner role is found in multiple industries, and their roles are crucial for sustaining the market. Constant skill development is required for Product Owners to remain competitive. To embrace the skills and develop the techniques of PO, Product Owner Certification will be the best option. By adopting the Product Owner role, banks can deliver superior banking experiences that keep customers satisfied and loyal.