Why banks must embrace digital transformation…or pay the ultimate price

July 12, 2018

In many ways, it’s never been harder to work in banking or the wider financial services (FS) sector. There are many pressures that have arisen over the past decade, ranging from public mistrust of the industry as a whole, to the emergence of more agile challenger brands and startups that are able to offer quicker, smarter and more appealing products and services.

There is also the issue of ever-increasing volumes and complexity of compliance requirements. Many FS organisations are active in a number of different countries, and demonstrating good governance and compliance in each of these is a highly demanding task. Furthermore, due in part to the financial crisis of 2008, there is a need to show more transparency in decision making, to both regulators and to potential customers.

A related challenge to these, is the need to embrace digital transformation. With many banks and FS providers established decades or even centuries ago, there is an inherent conservatism about change and new approaches to certain processes. Yet most banks have realised the need for change and are much more open to innovation and collaboration than they have been. What are the main challenges they are facing and how can they succeed in the new digital business climate?

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