Financial institutions see huge payoffs for digital investments
Banks and credit unions know they are behind the digital 8-ball, so most are ramping up their investments. As financial institutions tee up the necessary resources, most say they expect to see significant gains. But experts caution that just implementing some digital projects should not be confused with true transformational change.
When it comes to digital transformation in the banking industry, the Holy Grail is to have a culture of innovation embedded in the financial institution’s DNA. Few do yet, but banking providers at least appear to be making progress.
What many increasingly recognize is that becoming truly a digital-first institution not only removes the existential threat — a purely “survival instinct” — but is actually a clear path to increased profitability.
According to a study by BDO, nine out of ten financial institutions in the survey say they either have a digital transformation strategy or are developing one. And almost two-thirds of respondents in the survey say they anticipate revenue gains of 10% of greater within three years, if they take appropriate steps now. Of course that’s a big conditional “if.”
Plans mean little without execution and implementation. Only one in seven of those with a digital transformation plan are actually in the process of implementing the strategy. 29% admit they are still formulating their strategy.
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