Digital Transformation for Financial Services industry

Global banking is moving from a wave of boom-to-bust credit to a transformation defined by digital. Many banks have embarked on a digital journey and are exploring the purpose of the digital transformation. In most cases, getting digital is defined as

• Innovation in payments
• Enablement of broader systems transformation through digital technologies

While most industry pundits agree that digital innovation in banking offers both potential rewards and costs, they however predict that revenues and profits that will eventually migrate to banks who

• Successfully use digital technologies to automate processes
• Create new products and revenues that leverage digital technologies
• Improve regulatory compliance
• Transform customer experience
• Disrupt key components of the value chain

It is widely believed that businesses that resist the digital revolution will be severely penalized by customers, financial markets and in some cases, regulators. A recent McKinsey study reveals that digital laggards could see a profit erosion of close to 35% while digital companies could possibly see a profit upside of 40%.

DIGITAL BANKING STRATEGY – MARKET OVERVIEW

Globally, banks are embarking on transformation projects that will enable them to embrace the digital world. While much of the compulsions to undertake such sweeping changes are driven by the explosion of consumer technology, banks however are taking small and significant steps on the transformation trajectory. Bulk of the digital transformation projects today consist of

• Migrating transactions to newer digital platforms
• Significantly upgrading web and mobile technologies
• Creating a presence on social networks
• Data based cross sell & up sell platforms
• Cultural transformation initiatives that take the banks from their current state to the culture of digital native companies such as Creating Innovation Centers and Testing Centers.