Digital transformation can help financial services companies to improve their customer experience in many ways, like attracting new clients and simplifying banking.
FREMONT, CA: Banks and financial institutions have been using digital channels quiet for a while. It allows them to reach and involve new customers, minimize costs, and enhance their overall performance and services. But rapid technology growth and improving customers' demands need much more significant changes. The banking sector understands that well and seems to be ready to play the digital game.
Digitalization is very different for every industry, but it seems to be very critical for the banking industry as it is one of the most advanced data-driven fields. In a recent survey by Gartner, it mentioned, as many as 80percent of traditional banks will go out of business by 2030.
[vendor_logo_first]Going digital has affected the banking workforce. Automation can result in staff minimization, but it can also boost up the demand for data scientists. It is time to start educating the new generation of workforce and hire new talented employees.
The most challenging problem to overcome on the way to embrace digitalization in banking is the legacy systems and systems integration challenges.
According to the 2018 Retail Banking Trends and Predictions report, approximately 69 percent of the banks are unable to transform due to the problem. So undeniably, this is the critical factor that is standing in the way of successful digital transformation for every bank.
The banking industry is also subject to high-security risks due to personal data and transaction records. At the same time, the need to meet the compliance obligations makes it even harder to implement any of the changes.
Another most-cited problem of the digitalization in banking is culture. As many as 63 percent of companies say that they are struggling to overcome this, just like any other issue.
Digital transformation in the banking industry is not a project with a deadline, but an ongoing journey of change. Hopefully, banks will be able to overcome the challenges, shape new business models with the help of IT soon, and get one step closer into the new robust digital tomorrow.
Check Out:
Top FinTech Solution Companies
Top Fintech Service/Consulting Companies
