Save my name, email, and website in this browser for the next time I comment. Assuming the right digital technology has been identified, which can successfully create the potential for transformation … The scale of the COVID-19 crisis shows the need; real-time predictive analytics may help mitigate the consequences of threats to supply-chains. Furthermore, the current COVID-19 shock has put immense pressure on technology capabilities (e.g. 21% of North American and European enterprises say their digital transformation … and requires CIOs to anticipate and prepare for the ‘next normal’ with an accelerated shift to digital channels. Recent studies show that 84 percent of digital transformation initiatives fail , often despite the rigorous application of “best practice”. Integration of technology with some businesses, especially in the informal sector, may be hard or slow due to the nature of their operations and limited capacity to use different technology tools; for example, use of cloud-based services, computers, and smartphones among others. Top digital business strategy adopters include Services (95%), financial services (93%), and healthcare (92%). Once defined by a few well-known intuitions, the financial services world now consists of thousands of new players spanning all sizes, revenue ranges, and services. Applying our deep industry solutions and extensive experience, our group of talented professionals provide a holistic approach to middle market clients looking for successful digital transformation, using our Digital 3+1 approach. … Visit our Technology & Business Transformation Services practice page, or read our related insights: Digital Transformation in Financial Services, About the BDO Middle Market Digital Transformation Survey, Business Restructuring & Turnaround Services, International Financial Reporting Standards, Financial Institutions & Specialty Finance, BDO Center for Corporate Governance and Financial Reporting, Top Financial Services Digital Transformation Trends. Organizations can conduct customer sentiment and mood analyses and personalize customer experiences based on individual customer profiles—such as suggesting customized portfolio solutions based on each individual’s risk appetite. The industry may still be in its early stages of adopting blockchain and distributed ledger technology, but few companies doubt its huge potential. Digital transformation is less about revolutionary technology than it is about changing the way companies work. Digital transformation in the financial industry is born out of changing consumer demands and the threat from challenger banks The financial services industry is one of the fastest sectors, in terms of technology … All businesses want to cut costs, but financial services companies are especially feeling the pressure to tighten their belts. With a decline in demand for goods and services due to reduced disposable income in the population, CIOs and their teams prepare to embrace the next major phase of digital transformation. Thirtynine percent cite commoditization and automation as their biggest digital threat, higher than 23 percent of all organizations. While robo-advisors, chatbots, and other automated processes can greatly increase operational efficiencies, it could be that job security fears—or the possibility of being replaced—remain. At the same time, competition within the sector has ramped up quickly. This website uses cookies to improve your experience while you navigate through the website. As mentioned, COVID-19 has brought a fundamental shift in business operations – including forced adoption of online, mobile, and call centres; and overnight virtualisation of workforce, workplace, ways of working and managing teams remotely…a tipping point for digital and contactless payments, with an evolution of underlying market structure and economics. Blockchain’s significant promise has a third of all financial services organizations considering its deployment over the next year—a percentage expected to increase in the future. Internal controls, especially related to payment functions, should be in place to keep employees from going around the four-eyes principle and the separation of duties. Embracing digital … Advancements in AI have transformed every aspect of the financial services industry. Changing customer expectations, cutthroat competition, increasing regulatory complexity, the pressure to streamline operations, and other factors are driving the push for reinvention and innovation. The digital transformation market by vertical has been segmented into banking, financial services, and insurance (BFSI), healthcare, IT and telecom, education, retail, media and entertainment, … By 2024, the blockchain market is expected to be worth more than $16 billion, according to Global Market Insights, with applications related to identity management anticipated to be the most lucrative, with a greater than 90 percent compound annual growth rate (CAGR) from 2018-2024. As a result of the proven and promising gains, financial services companies are making significant digital investments. Nearly three-fourths of financial services executives (73 percent) cite a lack of skills or insufficient training as the biggest challenge to moving forward with a new digital initiative—significantly higher than the 54 percent average for all organizations. They must also strive to cultivate a corporate culture that embraces constant experimentation and learning—one in which short-term mistakes and failures are expected and accepted in the pursuit of long-term innovation and value creation. This website uses cookies to improve your experience. Whether you want to focus on enhancing your customer interaction, increasing profitability through operational excellence, improving your employee experience, or deploying to the cloud for increased agility and flexibility. IoT, AI & Blockchain investments heat up. 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