In the last few years, banks have stepped up their investments in digital capabilities in response to increasing customer demand for online access and the availability of new technical capabilities such as data analytics, cloud and artificial intelligence, and a more open regulatory environment. But have these investments transformed the banking experience? Are banks on the right path in changing how they operate and deliver value to their customers?
Research has shown that the majority of digital transformations have not delivered the level of desired outcomes. An IDC analysis estimates that 70% of all digital transformation initiatives do not reach their goals. Of the $1.3 trillion that was spent on digital transformation in 2018, it was estimated that more than $900 billion went to waste.
Ravi Kittane, Financial Services Technology Consulting lead at PwC Malaysia, said in a post that the following three reasons are major contributors.
- Lack of alignment between top level management, transformation teams and teams deploying the new capabilities
- Failure to automate end-to-end business processes (such as customer onboarding, account opening) resulting in fragmented solutions
- Inability to build organizational capabilities and talent to sustain continuous development beyond initial Proof Of Concepts