This past March, I had the opportunity to deliver the keynote presentation at the SAP Forum in Sao Paulo Brazil. The subject was entitled Trends in Digital Transformation. Digital Transformation is no longer a theory, but in many regions banks must develop both the strategy and process to handle the increase in digital transactions. This is no longer a regional trend but as banks continue to connect on the global payment network, digital payments are at the forefront.
Based on the Accenture and Technology Fund Report 2015, the following trends have been noted:
Furthermore, the October 2015 McKinsey Report reported the following trends which support the findings of Accenture;
Strategic partnerships will continue to grow and be part of the value chain. Digital Transformation is not readily embraced by all bank stakeholders. In many situations, there is resistance. Below represents a summary of reasons why banks are resisting the digital transformation trend.
Organizations are still struggling with application anarchy and legacy systems, the speed of technology implementation, will force organizations to quickly adopt new tools to advance in their digital journey. In some cases, moving to a complete digital bank, such Nubank in Brazil, represents a drastic shift. Consumers are migrating from using bank branches to their mobile devices in order to conduct their banking.
Some banks boast 100% digital traffic from paying bills to getting a loan. The days of walking into a bank to open an account and getting a toaster or blender is gone! Costs continue to dominate and banks are concerned to drive costs downward. However, when there are opportunities, there are challenges that have to be met and future updates will address this.
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