Today, it’s almost impossible to walk into a boardroom, client meeting, or innovation brainstorm without hearing the phrase ‘digital transformation’ bandied about at least once, twice, or — more probably — a dozen times.
The rise of FinTech companies and other digital transformation solutions over the past couple of years has led to a completely new as well as transformed financial services landscape. The changing expectations of customers, cutthroat competition, increasing complexity in terms of regulations, the pressure to streamline operations – in addition to other factors – are driving the push for reinvention as well as innovation.
A new era of open banking has allowed systems to quickly and seamlessly integrate with new platforms as well as applications. Physical banks and paper systems are fast being replaced by robust networked digital ecosystems.
Altering The Fundamental Provision Of Services
Digital transformation is altering how and by whom financial services are provided. This brings benefits to consumers in the form of expanded as well as streamlined access to financial services. However, this digital transformation is also affecting the financial services industry in ways which could lead to greater risks to systemic financial stability.
The digital transformation journey can be extremely challenging. While some organisations have digital transformation in their DNA, the majority of bodies will need substantial foresight and planning. They will need to divest themselves of old habits, re-invigorate cultural norms, upskill their employees as well as adjust their way of thinking in order to become a digital business. Learning the best way to connect the dots between digital initiatives, strategy, and business enablement will be crucial.
Especially middle market financial services companies have a unique challenge. These organisations need to learn how to navigate the digital transformation journey without the more robust resources that their larger peers have at their disposal. In addition, they do not have the same level of flexibility and agility as their smaller counterparts. They need to start the journey today—or risk being outranked by the competition or losing industry relevance.
