Digital transformation (DX) represents the best way for banks worldwide to prepare to respond to rapidly changing customer behaviours and market conditions. However, as with any transformational journey, however, the road to DX maturity is beset with challenges.
For a traditional bank, where change does not happen often, the DX journey is easily derailed by lack of commitment at the top. Anecdotally, according to the new report, banks around the world that seem to be following the DX path and show evidence of fundamental changes to their profitability and growth are being led by executives who instill confidence in the organization that DX is the future of the bank and are willing to make the associated policy changes to make it happen.
According to Jerry Silva, global banking research director for IDC Financial Insights: “There is a need for a clear articulation from the top on ‘how things are changing’ and ‘why we must change’ to serve as a preamble to the DX master plan that the bank refers to and adheres to consistently. We believe that it is in this area — Leadership DX — that most banks will stumble.”
“Digital transformation is the process that will separate the banks that will flourish over the next decade from the institutions that will perish from non-action,” Silva adds. “The banks that have demonstrated strong innovation and market presence are the ones that are committed to a DX culture, starting with the CEO.”
IDC Financial Insights has unveiled a new IDC MaturityScape, “Digital Transformation in Banking” to help bank line-of-business (LOB) and technology executives identify areas in need of improvement in support of digital transformation in five key areas or disciplines: Leadership DX, Omni-Experience DX, WorkSource DX, Operating Model DX, and Information DX.