Digital transformation (DX) is not just a buzzword in the finance industry – it is delivering significant revenue increases, improvements in cyber security and customer relationships, and delivery of purpose-driven sustainable business initiatives.
These are among the main findings in new research published today by Fujitsu.
Based on a global survey of executives in the banking and insurance industry, Fujitsu found unambiguous evidence of the value provided by DX in the sector.
Eight-five percent said DX initiatives had positively increased revenues, and 84% took the same view on improving risk and security.
A large majority also reported DX contributing to strengthened customer relationships (83%), building trust (83%), enablement of new ecosystems (82%), and driving a purpose-driven sustainable business approach (82%).
High levels of support for DX shown by the survey are even more impressive in the light that financial services organisations have more experience of change programs than most other sectors.
Banks and insurance companies have transformed themselves over the past decade, ushering in new digital solutions, omnichannel excellence, and radically upgraded customer and employee experiences – all supported by business transformation and enabling technologies.
The survey shows that most have mature IT strategies and implementations in key areas. Over 80% of respondents reported mature implementations in place in cyber security (86%), digital transformation initiatives overall (84%), private cloud (83%), and workplace innovation (83%).
Despite this apparent maturity, the industry now faces new challenges brought about not just by the pandemic but by hyper-competition driven by new technologies, new niche digital-native entrants, and technologically advanced traditional competitors.
At the same time, growing security threats and ever-changing regulatory compliance requirements add to the complexity and challenge. Indeed, the complexity of implementation is the biggest challenge to DX overall, says the survey, with more than three quarters (76%) rating it as moderately to extremely challenging.
Wilhelm Petersmann, head of financial services: central Europe and MD of Switzerland and Austria, at Fujitsu, comments: “These findings come at a crucial time for banking and insurance companies. They are reviewing their needs and priorities for the next wave of transformation – primarily driven by hyper-competition and the workplace transformation needed to respond to that competition.
“The executives in the survey understand that complexity of implementation is their principal challenge, making partner choice critical going forward. Now, more than ever, proven ability to deal with technical complexity and the cultural attributes to drive change in expanded ecosystems are the essential characteristics for success.”