Banks have long recognized the need for radical transformation. However, the recognition has not translated into proportionate action. Or readiness, as this year’s research findings indicate. Few banks have managed to deploy digital at scale. And few consider themselves sufficiently ready to take advantage of digital technologies for desired business outcomes. Some wrestle with challenges of legacy systems, others struggle to transform culture, talent, and workforce.
Holistic and continuous innovation is the only path to differentiation.
This year’s Innovation in Retail Banking report underscores the importance of the right culture and the right leadership in addition to the right technology.
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What are banks losing sleep over? How are they meeting their innovation objectives with digital transformation? Join the webinar for the key research findings. Also learn from the innovation stories of leading financial services providers.
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Our findings suggest that most banks have not deployed digital transformation at scale. However, organizations where innovation is a priority are further ahead of their peers in the desire to become a ‘digital bank’. These leader organizations have top management support, are more committed to investing in customer experience and advanced analytics, and are more likely to measure results of their efforts. Not surprisingly, these firms have more positive financial results than firms where digital transformation is only partially deployed.
Some of the most progressive banks are innovating with Finacle to empower their customers. Know how these innovation leaders are unlocking new value.
Progress of Deployment of Digital Banking Transformation Globally
43% of the banks that consider themselves to be innovation pioneers report to have deployed digital transformation at scale. 14% of the pioneers have only partially deployed digital transformation at their organization.
Digital Banking Transformation Impact on Strategic Objectives
Digital transformation seems to be having the greatest impact in the areas of customer experience and the delivery of digital solutions, with most other objectives not being impacted nearly as much. Not many organizations believe digital transformation impacts one of the most critical elements of digital success – the ability to change existing business models.
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There is a variance between what organizations know is important and their stated ‘readiness’. Mobile technologies topped the charts for technologies to have the greatest impact on banking in the near future, followed by advanced analytics and open banking APIs. However, readiness for AI and analytics continues to be lower than expected.
Readiness of Financial Institution to Leverage Digital Technologies
Less than 50% of the banks surveyed consider themselves ready to leverage the technologies they think will make the most impact
Learn from the success stories of leading banks using Finacle’s blockchain solutions to power their trade and remittance transactions.
Biggest Threats to the Banking Industry over the next five years
By combining modern technology with a laser focus on improving consumer experiences, fintech and technology firms have brought unprecedented innovation to the banking industry.
One of the primary benefits traditional banks and credit unions had over their competition in the past was trust. Nobody wants to put their life savings at risk or to partner with an organization that wouldn’t protect their identity and privacy. However, this advantage seems to be diminishing. It does not appear as though trust is a big problem for big techs such as GAFA (Google, Amazon, Facebook, Alibaba), who along with digital upstarts and FinTechs have emerged as the new innovation leaders in banking.
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