Why most digital banking transformation efforts have stalled
While there is an almost universal awareness of what needs to be done to digitally transform financial institutions, research from the Digital Banking Report shows that the progress is still slow to non-existent at most organizations. This is a recipe for failure in today’s banking ecosystem.
Digital transformation is growing more pervasive in every banking organization, moving beyond “projects” to organization-wide initiatives involving technology, product development, business models and culture. Budgets are increasing as organizations are finally updating legacy systems and ownership of the process is moving up the organization structure.
While the potential benefits of digital technologies are well documented and accepted by a majority of bank and credit union leaders, the deployment of digital banking transformation does not appear to be keeping pace, according to the Digital Banking Report, “State of Digital Banking Transformation.” This is concerning, given that the pervasiveness of required digital transformation is moving beyond the IT area of banking to include virtually all areas of the organization.
Highlights of this report, sponsored by Pega:
- Digital banking maturity is very low in retail banking, with only 12% of firms indicating that they are “leaders.”
- There is a very strong correlation between innovation leadership and digital transformation leadership in retail banking.
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