Banks “Not Ready” for Digital
Experts believe banks still have a long way to go in terms of digitalization / Photo: iStock
"The past is holding banks back."
This is the key finding of Industrialized and Ready for Digital Transformation, a study by IESE professor Robert W. Gregory and Synpulse Management Consulting.
More than one hundred executives from banks, including multinationals with branches in Spain, were surveyed from April to May 2015. The study reveals that the majority feel unprepared for the shift to digital demanded by today’s public.
Although a significant 94 percent of respondents have adopted digital banking to some extent, only 22 percent felt "ready" to embrace the digital transformation of the sector.
What’s Slowing "Digital Readiness"?
The study found significant disparity between respondents’ perceptions and "digital readiness," and the current state of operations. Four key areas for improvement in retail banking were identified.
Three Steps to Drive Change
Professor Gregory proposes a model that divides the industrialization and digitization into three inter-related areas:
All of the banks in the study were rated in terms of their readiness for each of these areas. The findings show that banks best prepared in the area of "sourcing and governance," with a rating of 68 percent. "
"Banks still have a long way to go toward industrializing their back end to be able to meet the new set of expectations and demands associated with digital transformation," says Gregory.
With customers demanding any-time/anyplace banking – and with agile FinTech startups entering the marketplace to meet new needs – banks are running the risk of being left behind.