20 Nov The power of people in digital banking transformation
Waves of change from the digital world are dramatically reshaping customer behavior and expectations in banking. Already more than half of consumers access their savings accounts primarily through digital channels. In addition, traditional banks face fresh competition from unexpected new sources. For example, financial technology, or fintech, start-ups are using software to disrupt nearly every step of the financial-services value chain—including payments, loans, trade finance, and foreign exchange—with new offerings that fulfill unmet client needs.
Leading financial institutions are struggling to find the right defensive and offensive moves to simultaneously focus on the client experience and reinvent business processes. Most are investing in digital capabilities but often not aggressively enough. Some are taking a multiyear journey toward digital transformation. Others are choosing to acquire existing digital banks to leapfrog the competition and fuel growth. This report is the first in a series on the digital challenges that financial institutions are facing.
In this report conducted by BCG Perspectives, there are five lessons that today’s leaders must internalize in order for their organizations to succeed. Companies that adopt these best practices frequently achieve an improvement in net profits of 5% to 15% for the core business from both higher revenues and lower costs. They also gain the opportunity to tap into the potentially deep revenue pools that fintech players are beginning to seize.
No Comments