Banks That Commit to Digital Transformation Are Poised for Success
Digital transformation (DX) in the worldwide banking industry is characterized by the ability to use technology to break out of the constraints forced by legacy systems and processes and enable a more efficient and responsive institution.
While all banks worldwide acknowledge the importance and complexity of transforming their businesses to compete in this new digital economy, nearly 40% have not yet executed on a sustainable digital transformation strategy, according to a new survey from IDC. To help institutions assess, benchmark, and identify areas of improvement in their digital transformation journey, IDC recently published IDC MaturityScape Benchmark: Digital Transformation in Banking Worldwide, 2018.
All banks worldwide acknowledge the importance and complexity of transforming their businesses to compete in the new digital economy. However, nearly 40% are still at the ad hoc or opportunistic stages of maturity, meaning that they have not yet executed on a sustainable digital transformation strategy. Fewer than 10% can claim that they are in a position to be leaders in innovation and adjust to, or create, significant disruptions in the market.
Transforming from the multitude of legacy technology and processes in the banking environment is not an easy task. The sluggish nature of organizational change makes the challenge even more onerous. Those banks that are succeeding are the ones that recognize the need to embrace transformation at the highest levels of the organization and follow that up with a frank and accurate assessment of their business goals versus their technological and operational capabilities.
"Banks no longer have a choice but to transform if they want to become more responsive to today's and tomorrow's markets," says Jerry Silva, director, Global Retail Banking at IDC Financial Insights. "Those banks that have committed to digital transformation at the board and C-suite level are already creating disruptions that are taking the industry to business models beyond banking."