By Tim Dively of CLA

Every year at this time, financial institutions plan their budget for the upcoming year. If you are part of the budget approval team, not only do you need to make sure you work on your “maybe next year” response, but you’re also likely accounting for at least a 5% increase from your vendors — along with additional staff, capital improvement projects, and training and development.

Though there is a lot to consider when budgeting overall, don’t forget about including digital into your overall strategy and budget process. Learn more about digital investments and how they can help you better identify what to account for in your budget and support your strategic goals.

Digital: No longer a “nice to have”

Traditionally you may have considered digital a cost center, as it’s historically been a “nice to have” but not a “need to have.” In today’s industry, it is no longer optional — it’s necessary.

With the right plan and frame of mind, digital solutions provide an opportunity to save money in the long term. There may be upfront costs to stand up these solutions, but digital doesn’t exclusively mean a new piece of software. It may simply involve enhancing your existing systems and processes with low-cost, built-in digital enhancements that just need to be configured.

Develop a data strategy to identify your digital needs

If you don’t have a current data strategy, that would be an appropriate place to start. Data helps define your digital strategy, justify the need, and prioritize your projects.

The goal when proposing digital budget items is to align with your overall institution strategy to supplement and improve the likelihood of meeting your targets. Digital might be 20% of the overall cost of a project and not standing on its own. It shouldn’t be a separate bucket within your institution to fund and manage.

What’s next?

In part two of this blog series, we’ll focus on creating and communicating your digital journey with your entire organization through a digital, IT, and cybersecurity plan — and discuss leading practices that can help you identify and prioritize when the timing is right to commit resources, including budget dollars to digital solutions.

For more information on digital solutions, contact Tim Dively at tim.dively@CLAconnect.com or 704-816-8575.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CLA) to the reader. For more information, visit CLAconnect.com.

CLA exists to create opportunities for our clients, our people, and our communities through our industry-focused wealth advisory, digital, audit, tax, consulting, and outsourcing services. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment adviso