Once considered the overseer of efficiency and processes, today’s COOs are expected to be technologically savvy, digitally focused, and innovation-driven. The operations of yesterday — manual workflows, siloed systems, and reliance on intuition — can no longer sustain a competitive advantage.
The COO of tomorrow must lead with a command of technology and a vision for the future.
COOs who fail to adapt risk becoming obsolete, leaving their organizations exposed to inefficiency, regulatory risks, and falling behind competitors.
Why being technically minded is no longer optional
Operations in modern banks are far more complex than they were even a decade ago. The rise of syndicated loans, the shift to SOFR, and growing regulatory demands have introduced intricacies that can’t be managed with outdated systems or manual processes.
At the same time, borrower expectations have shifted. Clients demand faster turnaround times, transparent communication, and seamless digital experiences. Large banks are already leveraging advanced technology to meet these needs, leaving mid-market banks scrambling to catch up.
COOs must now navigate a world where automation, AI, and real-time data are necessary as processes like interest calculations, compliance reporting, and loan servicing are increasingly managed by intelligent systems.
This growing complexity creates a unique challenge — and opportunity — for COOs. Banks with COOs who embrace technology can scale faster, process loans more efficiently, and provide a better borrower experience. Those who don’t risk being outpaced by competitors with smarter, more agile systems.
The COO as a digital leader
Being a digitally minded COO means rethinking how operations are managed from the ground up. The COO of tomorrow must evolve from a manager of processes to a leader of transformation.
For many COOs, this means stepping outside their traditional comfort zone. Historically, COOs relied on IT teams or CIOs to handle technology strategy. But as operations become increasingly tied to digital solutions, COOs need to actively shape how technology is integrated into every facet of their work.
Being digitally savvy isn’t about knowing how to code. It’s about asking the right questions:
- Is this system scalable?
- Can it provide real-time insights?
- Will it enhance collaboration across departments?
The COO who can answer these questions confidently will set their bank up for long-term success.
What happens if you’re not digitally focused?
Choosing not to embrace digital transformation has serious consequences—for COOs and their banks. Without the right tools and mindset, inefficiencies multiply, costs increase, and competitive ground is lost.
Here’s what’s at stake:
- Manual workflows and fragmented systems will only become more burdensome as operations grow. This limits scalability and increases costs.
- Without real-time insights and automated compliance tools, banks are more likely to encounter audit findings, regulatory penalties, or missed red flags in loan portfolios.
- Top talent wants to work with forward-thinking leaders. A COO resistant to change risks losing high-performing employees frustrated by outdated processes.
- Faster, more digitally advanced competitors will capture market share, leaving slow adopters behind.
The message is clear: without a focus on digital transformation, COOs and their banks risk falling behind competitors, frustrating employees, and losing client trust.
The Modern COO’s digital playbook
To thrive in this new era, COOs need a clear strategy for embracing technology. Digital transformation isn’t a one-time project — it’s an ongoing process of aligning technology with the bank’s strategic goals. Here’s what a successful approach might look like:
COOs must prioritize automation. Manual processes are the Achilles’ heel of modern banking operations. Whether it’s automating interest calculations for syndicated loans or streamlining compliance reporting, automation reduces errors, saves time, and frees up teams to focus on higher-value tasks.
Centralizing data should be a core focus. Siloed systems make it nearly impossible for COOs to get a clear picture of operational performance. By integrating data into a single platform, banks can improve collaboration between risk, credit, and operations teams while ensuring consistency across workflows.
Scalability should guide every decision. Banks that grow their loan portfolios without scalable systems risk overwhelming their teams with inefficiencies. Technology investments should support not just the bank’s current needs but also its future ambitions.
The COO role has evolved from operations management to strategic leadership, with technology and digital vision as the foundation. Those who embrace this shift are positioned to scale their banks efficiently, improve borrower experiences, and strengthen regulatory compliance. Those who don’t will struggle to keep pace in a competitive industry.
Digital transformation isn’t an option. The question is: Are you ready to lead the charge?
