Banking is notorious for being slow in Digital Transformation when compared to other more agile sectors such as Retail and eCommerce. This harsh reality is especially true for incumbent banks. Their complex and long-standing core require substantially more time and resources. Plus, the fixed mindset of the workforce usually rejects a thorough revolution like Digital Banking. Instead, they prefer a more gradual change.
Reportedly, Digital Transformation in the banking sector is still responsive. When banks launch digital initiatives, it's mostly a response to major market trends and shifts in customer behavior that leave them with no choice but to change. Mobile Banking or electronic Know-your-Customer (KYC) are prime examples.
However, as more market challengers like fintech and neo-banks entered the banking scene, we can expect to see more success stories of Digital Transformation in Banking.
The benefits of Digital Transformation can differ slightly from bank to bank. But in general, there are some common advantages to consider, which we will make clear in this article.