How digitisation is changing financial sector

The increased adoption of digital banking products during the pandemic has prompted banks to accelerate their digital transformation agendas. [iStockphoto]

The digital revolution is transforming the banking industry. Every bank is eager to evolve, using secure and compliant technology to fundamentally reimagine its business.

This is true innovation: changing customer expectations, meeting complex regulations, dealing with new competitors, combating cyber threats, and inspiring a productive workforce. Maintaining a competitive advantage and differentiation entails understanding customer needs and adapting to market trends while reaching the underserved and unbanked.

Every financial services organisation's goal is to create loyal fans, not just customers, by providing true value through personalised experiences.

Financial service providers must focus on driving and empowering digital transformation across their organisations through an end-to-end holistic perspective by embracing tech intensity rather than focusing on specific digital products and tools.

Several key trends are driving the evolution of the financial services sector. The growing power of fintechs (financial technologies) and Big Tech as well as changing customer experience expectations are two important trends, while increased regulation is limiting growth and adding costs.

Legacy systems are impeding innovation and transformation, while the growing threat of cybercrime is a challenge the industry must face head-on.

Customer experiences

Customers are utilising digital engagement channels more than ever before, and as a result, financial services organisations are attempting to deliver differentiated customer experiences.

The increased adoption of digital banking products during the pandemic has prompted banks to accelerate their digital transformation agendas.

FinTechs have taken an agile approach to digitalisation, which is now influencing how organisations approach digitalisation.

Many financial institutions want to grow responsibly and deepen their customer relationships by providing differentiated customer experiences.

When it comes to investing in digital experiences for offerings such as lending, digital-forward banks are setting the standard. Transforming the financial services landscape will help drive economic prosperity across the continent and make financial services more accessible to the underbanked and previously unbanked. The pandemic has accelerated digital adoption, addressing immediate needs while balancing long-term goals. Because of their ability to accelerate deployment, reduce complexity, and manage upfront investment, financial services organisations have chosen cloud services to drive digital transformation. Without a doubt, the ability to accelerate innovation in order to reduce costs is critical to success.

As part of the need to differentiate new experiences, risk management, and compliance, the financial services industry is shifting toward open and interconnected ecosystems via the modernisation of core platforms such as payments and core banking systems.