Digital transformation in financial services

The need to rewire organizational DNA

In the quest to achieve market leadership, financial services industry (FSI) firms continue to focus on becoming holistically digital, customer-facing enterprises. But are they there yet? The 2016 Digital Business Global Executive Study and Research Project (“the survey”), the fourth annual study conducted by MIT Sloan Management Review and Deloitte Digital on this topic, offers some revealing insights and their implications.

The survey showed that overall, the financial services industry is on the cusp of a digital transformation right now. FSI firms are making significant investments to enhance customer experience and engagement through the development of new digital products and capabilities. The survey revealed that of the FSI firms with a digital strategy, 93 percent agree or strongly agree that the objective of their digital strategy is to improve customer experience and engagement.

Throughout the industry, there is widespread digital disruption. A full 90 percent of respondents agreed or strongly agreed that digital technologies are disrupting the industry to a great or moderate extent. Yet the study also showed that a majority of the financial institution employees surveyed do not believe their firms are ready for this disruption. Only 46 percent of FSI respondents agree or strongly agree that their firms are adequately preparing for digital disruption, marginally better than the 44 percent last year. So what’s holding FSI firms back from fully embracing the digital world and all that becoming digital entails?

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