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Digital Transformation FEATURE

Pledge or Perish

n the not so very distant past, “Disruption” significant management commitment,
was the buzz word. While it was still in both in terms of time and resources. When
Ivogue, the buzz was overtaken by the I refer to digitalization, it encompasses
term “Fintech”. While Fintech continues to all - digitization, advanced analytics, AI,
retain its charm, “Digitalization” is catching Blockchain, connectivity and communication.
every banker’s fancy and becoming a source The Banking sector has been slow to adopt
of a tremendous change in the banking changes in technology and digital consumer
and financial services industry. The world engagement. This is largely due to the legacy
continues to evolve. Change has been the systems and the cost involved in replacing
only constant. However, the pace of change them; and reservations about open banking
has experienced a metamorphosis. APIs.
The Internet and the Internet of Things Many banks have realized that there is no
(IoT) made life simpler for consumers but other alternative and if they wish to survive
created far bigger challenges for marketers let alone thrive, they have to bite the bullet.
in every domain. However, we will restrict However, despite the realization, not all
ourselves to those in the Banking and banks have spelled out their digital strategy
Financial Services Industry (BFSI). In a which is essential to a digital transformation.
world full of choices, the consumer of today According to Boston Consulting Group,
not only focusses on products and services “Digital transformation must be a clearly
or their value; but also on his personal articulated strategic priority, supported by
experience. Constantly changing trends appropriate funding, talent recruitment,
in the way products are being promoted, openness to new agile ways of working, and
fast-evolving communication channels, a willingness to take risks” Top management
.
increasing choices, tighter regulations on of many a bank still seems fearful of
data protection, privacy & governance, venturing into unfamiliar territory and lacks a
fickle consumer behavior, rising costs, clear vision to convince their Boards to make
depleting margins are all forcing the BFSI such commitments. According to a study
professionals to be better aware, quicker by Accenture which covered 160 retail and
to reach, faster to react - and simply, be commercial banks in 21 countries, only 12%
more efficient. Agility and adaptability of the surveyed banks have fully committed
have become key competencies. Focus to digital transformation, 50% of banks made
has shifted from customer satisfaction to little or no progress and the remaining 38%
customer experience. are in the midst of their transformations but
The complex world that stares at us now their digital strategies lack coherence. Those
needs something to simplify it. Digitalization fully committed to digital-first strategy or in the
has come as a big relief but it also requires midst of digital transformation have achieved

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