Many financial institutions don’t understand the need for digital transformation

Despite all of the discussion in the banking industry about digital transformation, many financial institutions greatly underestimate what is needed to 'become digital'. Contributing to the misunderstanding are a number of metrics that continuously get referenced that can breed complacency.

According to Adam Dell, Head of Product for Marcus by Goldman Sachs, traditional banks and credit unions are not prepared to compete with new digital challengers. At the Fortune Brainstorm Finance conference, Dell said, “There are two kinds of incumbent banks: There are banks that are screwed, and there are banks that don’t know they’re screwed.”

At the same conference, Harit Talwar, the head of Marcus, provided an idea of his organization’s strategy when he said, “Our purpose is to disrupt the distribution and consumption of financial services – pretty much what Amazon has done, and is doing, to retail, or what Apple did to the music industry.”

The question is: Are traditional banking organizations prepared for this level of transformation? More specifically, do these institutions understand what is needed to become a digital competitor?


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