Are banks ready for digital transformation?
The banking industry is undergoing major changes. Customer expectations are higher than ever, competitive Fintech startups are growing and new regulations are emerging. In the world of shared services and connected economies, how do financial organisations battle this storm?
According to a Understanding Digital Mastery Today study by Capgemini, FIs have previously underestimated the challenges that digital transformation brings. Compared to the 2012 report, a smaller number of financial executives believe their organisations have the required digital capabilities to succeed on the market – with the number of confident respondents falling from 41% to 37%. In fact, only 38% of the 360+ bankers surveyed said they have the necessary digital and leadership capabilities required to keep up with the pace of digital transformation.
Although the digital shift is well underway, the financial services industry has reached a crossroads where it is trying to meet rising customer expectations while managing costs and dealing with pressure from Fintech competition. In this environment, the survey results look reassuring: large organisations are becoming more realistic about their resources and capabilities and have realised that there are significant improvements to be made. The time has come for banks to re-evaluate their business models in order to ensure they reflect the changing marketplace. It is becoming more and more clear that tomorrow’s operating model is based on collaboration, innovation and agility. While there has been a lot of disruption in the industry already, there is certainly more around the corner, and building digital leadership will help drive success.