This week we read yet another article on digital transformation. But this one is different – it’s written about digital transformation in Retail Banking, not something we would normally read. The interesting thing is that all the themes also translate to Wholesale Banking.
The Financial Brand reviewed the “Innovation in Retail Banking Report”, an annual study written by the Digital Banking Report.
Overall the report highlights that the biggest threat to the financial services industry is keeping up with an increasingly demanding customer, integrating new technologies, and using advanced data analytics to provide predictive recommendations.
Other findings include:
- Banks continue to increase investment in innovation strategies across all functional areas
- The top innovation challenges were systems integration and legacy technology
- Technology investment is being made in ‘iterative’ technology as opposed to ‘disruptive’ technologies
- Most financial institutions are still at an early stage of using analytics for descriptive or diagnostic customer support
Digital Transformation – 2016 Vs 2017
In 2016 – The priorities for banks included creating a customer-centric organisation, enhancing channels to give a single digital experience, maximising mobile and social technologies, and enhancing or re-designing products and services for the digital age.
In 2016 – The biggest barrier to digital transformation was the legacy technology environment. The lack of a unified vision for digital and the lack of skills and experience were also important barriers.
Moving forward to 2017 – The priorities are digitising processes for products and services (ranking 5.35 on a 7 point scale), enhancing digital security (ranking 5.27), and improving the customer journey (ranking 5.24).
In 2017 – Not a great deal has changed in the past year, as organisations continue to struggle with legacy systems, technology and funding. On a 7- point scale, systems integration (5.17), legacy technology (4.93) and the resources of time and cost (4.91) were the areas of biggest struggles.
The complete article is a 5 minute read – https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/