Digital transformation in the banking sector is a complex journey. It requires not only the adoption of new technologies but also deep changes in organizational culture, processes, and management practices. To successfully manage this transformation, a thorough understanding of the current state is essential.
Terra Bank, a well-established player in Georgia’s financial sector since 1999, operates as a universal bank offering flexible, high-quality products and services to both individual and business clients. The bank’s strategic focus is on small and medium enterprises (SMEs), and its growth strategy emphasizes innovation and technology-driven development.
With a clear vision and readiness to embrace digital transformation, the bank’s leadership initiated a detailed audit. The goal was to evaluate how projects, product management practices, and the software development lifecycle were functioning, ultimately laying the groundwork for a clear and practical transformation roadmap.
Audit Approach and Key Phases
The audit followed a structured approach across four key phases:
- Preparation and Planning
In collaboration with bank leadership, the audit scope, methodology, and action plan were defined. Key departments and functions relevant to digital transformation were identified as focus areas. - Stakeholder Interviews
In-depth interviews were conducted with representatives from multiple departments, including the Project Management Office (PMO), IT, and business units. Interviews were held both individually and in focus groups, offering a broad perspective on existing challenges. - Document Review
The audit team analyzed internal documents, including process descriptions, project documentation, and internal policies. This helped assess how formalized processes aligned with actual practice. - On-Site Observations
Teams’ day-to-day operations were observed in real-time, including participation in meetings and work sessions. This hands-on phase revealed practical issues that might not have been visible through interviews or documentation alone.
Leadership Engagement as a Success Factor
A notable element of this audit was the high level of leadership engagement. Management actively supported all stages of the process, ensured access to necessary resources, and fostered open communication. This encouraged employees to share their honest insights and experiences, which significantly enriched the findings.
Outcome: A 9–12 Month Transformation Guide
Based on the audit findings, a detailed transformation roadmap was developed for a 9–12 month horizon. It included targeted recommendations for organizational structure, process improvement, technology infrastructure, and team capability development.
This case illustrates how a financial institution can effectively conduct a complex digital audit with strong executive backing. More importantly, the audit was not just a formality—it marked the beginning of meaningful change on Terra Bank’s digital transformation journey.
