DIGITAL TRANSFORMATION IN FINANCIAL INSTITUTIONS

Financial Institution Gaps

The World Bank estimates:

    • 1.7 Billion unbanked adults  worldwide
    • Only 20% borrow formally
    • Investment gaps LDCs $2.5 Trillion

Main Barriers:

  • Payments & financial Infrastructure
  • Enabling policies & institutions
  • Digital foundations
  • Policy & market foundations
 The Financial Services sector faces market and environmental challenges:

 

Technology: Leverage & adoption by customers, employees, competitors

Ecosystem: Changes in economy, partners, regulations, politics

Innovation: Inventions with deep impact on society 

Digital Finance Transformation

Digital transformation is cross-departmental collaboration in pairing business-focused philosophies with rapid application development models, using technology, people and processes to fundamentally change business performance

Digital is powered by cloud, mobile, big data, analytics, social and related technologies – to provide a uniform customer experience, engage as per customer convenience and create an intimate customer engagement

FinTech (Financial Technology) has emerged to transform Financial Services. It is the integration of software and other technologies into offerings to improve customer experience and operational efficiency

With innovative business models and new technology platforms, FinTech has reached into unserved and underserved markets

Digital Transformation Strategy

Digital transformation is planned and executed holistically, spanning all aspects of operation and organization

The organization’s Digital transformation affects interactively its business model, internal and external processes and functions, and culture

An overall view of the design of a Digital transformation program considers the design, development and implementation of:

  • A Digital core, automation, and interfaces in technology
  • Partnerships, innovation and culture in market strategy

A value proposition is developed, guided by competition, cost, technology, data and expectations driving Digital transformation.

Goals include agility, a flexible core, with APIs, partnerships, and innovation