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Banks are falling behind when it comes to digital transformation

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When it comes to digital transformation, banks appear to be falling behind other types of organization.

This is according to a new report from Infosys Finacle, based on a poll of more than 750 banks and financial services companies worldwide, which states that just seven percent have deployed digital transformation initiatives (opens in new tab) at scale.

Banks are fully cognizant of their current failure to innovate; less than one in ten (nine percent) consider themselves digital pioneers, down from 14 percent last year.

Even those that have taken a stab at digital transformation aren’t happy with their efforts, describing them as insufficient. Further, almost two thirds (62 percent) said their digital deployments did not deliver as expected.

The banks surveyed did, however, express interest in persevering with digital transformation, predominantly in a bid to improve customer engagement and cost management.

They want to be more agile, the report found, and they want to achieve more agility by adopting cloud-based solutions. Banks and financial services providers are looking to increase their investment in mobility, advanced analytics and open banking APIs – three areas they expect to have the biggest impact on banking in the next year.

“Amidst the pandemic challenges, ensuring employee safety, fulfilling remote service delivery and extending credit lines to help business clients have consumed banks’ attention. At the same time, banks have also had to allay shareholders’ concerns about growth, profitability and valuations,” said Sanat Rao, Chief Business Officer & Global Head, Infosys Finacle.

“The research highlights that the only way to balance these priorities is to scale digital transformation (opens in new tab), across customer engagement, cost management, business model innovation and people empowerment. While digitizing at speed and scale is the only way for banks to survive, revive and eventually thrive, the study reveals that banks have a long way to go on the implementation front.”

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.