Digital banking is more than just keeping up with technology—it's about understanding what customers need and delivering real value. Michal Plzák, Head of Digital Banking at Raiffeisenbank Czech Republic, has been doing just that for over 20 years. From the early days of internet banking to today’s mobile-first world, he’s seen it all and led the charge on some of Raiffeisenbank’s most impactful digital projects.
In this chat, Michal opens about how Raiffeisenbank uses transaction data to make banking better for their customers, the challenges of staying innovative, and what he thinks will shape the future of digital banking.
1. With your rich history at Raiffeisenbank, what’s been your favourite project to work on?
Probably the most interesting project was the integration with Equa Bank. The project was rewarding from both a business and technology perspective. I would venture to say that it was probably the most comprehensive merger of two large banks on the Czech market. From both client and employee reactions, we can conclude that this risky manoeuvre was perfect and that we have achieved something that no one in the Czech Republic has done before.
2. How big is your team, what tools do you use daily, and which KPIs do you focus on to measure success?
The team has 15 people on the business side and dozens of colleagues on the IT side who focus on the development of mobile and internet banking, open banking, digital acquisition and other areas such as chatbot. We have defined our digital success through 3 areas, namely sales performance of digital channels, user satisfaction with digital channels and the perception of the bank's brand as a digital leader.
3. How do you keep a pulse on what your 1.2 million mobile users really need, and how does user feedback shape the development of new features?
We have quite a lot of interaction with our clients through various channels, where we ask them what they are missing or would like to see modified in our services. So, we're not lacking inspiration and ideas, it's more about wanting to deliver more, but we have limited resources so prioritising what we're going to implement is our daily bread.
4. When you’re developing new features, what’s the process like, and how do you make sure they truly meet customer needs?
Several years ago, we switched to service design together with our customers. We call it service design and use standard tools for prototyping, research, qualitative interviews with clients, etc. Obviously, nothing groundbreaking, but if you do it honestly and in detail, I believe it's the deciding factor that then has a chance to differentiate you from the competition. You just deliver a slightly better customer experience and if you do it long term and with quality, clients see and appreciate that.
5. What’s RB’s approach to working with transaction data? What value have you unlocked for customers from this insight layer?
We have been using transactional data for quite a long time, both for client segmentation purposes and for CRM or service design purposes. This data allows us to gain valuable insights into clients, their behaviour and future needs. In this way, we can both make the user interface of mobile and internet banking more pleasant for clients, improve the clarity and presentation of transactions, and offer the appropriate services that clients need.
6. How do you balance internal development vs. outsourcing? What key factors do you consider when choosing the right partners to collaborate with?
We try to balance internal and external development in such a way that we are not extremely dependent on suppliers, but at the same time their experience and know-how is valuable to us and can be passed on to internal people in the bank. This model has worked well for us, and we would like to continue it in the future. The selection of cooperation partners is always based on several quality criteria and references, especially in the local market. Knowledge of local specifics is one of the key factors for us, as this is the added value that can positively influence the final product or service.
7. Can you share an instance where things didn’t go as planned in a project or feature rollout? What did you learn from that experience?
One such deterrent project was the bank's effort to replace its core banking system. This project completely failed and as a direct participant and observer I can tell you why. It was the absolute ignorance of the Czech and European market, legislation, accounting regulations and at the same time a delivery model built on offshore deliveries by a team from India and China. Simply, despite the best efforts of the team, some of the information was always lost in translation and you never have a chance to deliver the project in such a way.
8. What’s the next big thing in digital banking and where do you see RB’s digital services heading in the next few years?
I foresee that banking services will be significantly integrated into the applications and interfaces of companies in various industries, as is the case, for example, with payments in e-commerce. Our challenge will be to have an architecture that is open enough to respond flexibly to this trend and be where the client needs and interacts. This is not to say that banking as we know it will cease to exist, but it will transform and become more connected to technology and ecosystems.
9. What’s your go-to source for fresh ideas? Where do you find inspiration? Who's on your digital banking radar?
We look for inspiration wherever we can, but of course we are interested in the big tech giants like Apple/Google, which of course have and will have a significant impact on the world of finance. Other big players we work with are the VISA/MasterCard card companies and we keep a close eye on various neobanks like Revolut, Monzo etc.
10. You’ve been in the game for 19 years. What’s one piece of advice you’d give to digital bankers looking to innovate and push the boundaries?
It is certainly necessary to have a mindset that nothing is impossible, even if it seems unimaginable to us now. It is also necessary to have a lot of people around you who are searching and discovering together with you, bringing new ideas, because alone you have no chance to encompass everything that is happening in the world of technology and finance. And finally, have a feel for what clients are most likely to use, because you don't innovate for the sake of innovation, but for the benefit of your target customers, which will then be reflected in your company's performance.
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Ondřej Slivka
Senior insider
