Kuwait: October 27, 2019
A true digital transformation in the banking industry is much more than an upgrade to the customer interface.
- The fast pace of technological innovation is radically changing the financial services industry and commercial banking is no exception. However, upgrades to parts of the IT infrastructure and to the customer interface through online banking and mobile apps is not enough to qualify as digital transformation.
- The global banking industry has gone through a lot of flux since the financial crisis. Banks have since largely recovered, and their revenue pools have been expanding, which may be contributing to some banks feeling immune from the disrupting forces of the digital revolution.
- The needs of today’s retail banking clients are completely different from those of earlier generations. Such needs are driven by predominately young customers that are becoming increasingly reliant on smartphones to run their lives. They value a digital offering that would satisfy their needs with the least amount of friction and that would complement other digital solutions they use.
- Automation in banking has been about optimizing the use of resources, both financial and human. It can no longer be looked at only as a means of cost saving, however. True digitization of the banking industry has become an enabler for delivering future growth and a prerequisite for survival.
- Emerging competition both from tech giants and smaller Fintechs, in addition to evolving regulatory frameworks, is becoming a serious threat to those who do not embrace a meaningful digital transformation.
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