DIGITAL TRANSFORMATION IN BANKING

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CHANGE HAPPENS FASTER THAN BUSINESSES ADAPT

While more than half of executives rate their own digital IQ as strong… …only 5% of businesses feel they have achieved any real differentiation through digital.

The #1 reason more than half of the Fortune 500 have disappeared since the year 2000: failure to achieve digital change.

30%+higher profit among companies undertaking digital transformation than their industry peers

45% share of market leaders expected to fall out of the top 10 in their industries due to digital disruption over the next 5 years

2Sources: Global Center for Digital Business Transformation; June 2015. CapGemini Consulting & MIT Sloan School of Management, The Digital Advantage, 2014. State of Digital Transformation, Altimeter 2016; Digital Transformation In The Age Of The Customer, Forrester / Accenture

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There is confusion over the terms, Digitization, Digitalization & Digital Transformation. These terms are often used interchangeably when their actual meanings are totally different. In fact, they point very different ways of responding to disruptive technology.

Digitization: is to convert analog data into digital form. If you scan physical papers into electronic files, convert typewritten text into a digital form, switched from cassette tapes to MP3 files, or moved from old style camera film to digital photos, then you have digitized your data..

Digitalization: refers to enabling, improving or transforming business process by leveraging digital technologies (e.g., APIs) and digitized data.It is the use of digital technologies to change a business process and provide new revenue, save cost and value-producing opportunities.

Digital Transformation: is the process of changing existing business models with new digital technologies like APIs, Analytics, Mobility, etc. It goes deeper, creating new strategies and processes which lead to a new and better way of providing value for your customers, doing things faster, easier, and smoother. An example of this is moving from snail mail to real-time social media or chatbots.

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Digital Transformation is far beyond just moving from traditional banking to a digital world. It is a vital change in how banks and other financial institutions learn about, interact with and satisfy customers. An efficacious Digital Transformation begins with an understanding of digital customer behavior, preferences, choices, likes, dislikes, stated as well as unstated needs, aspirations etc.. And this transformation leads to the major changes in the organizations, from product-centric to customer-centric view.

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BANKINGIN THE DIGITAL ERA

BANKING IN THE DIGITAL ERA

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An increasing part of the population acts digitally

BANKING IN THE DIGITAL ERA

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The creation of new business models, enabled by new technologies

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A new paradigm enabled by new technologies and non-traditional competitors

FinTechs entered all parts of the industry with their technology-based business models

BANKING IN THEDIGITAL ERA

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