Many are ready to abandon the term “digital transformation” because they feel that overuse has put it in danger of becoming so genericized that it is meaningless. However, any move to write off digital transformation as irrelevant is premature.
The term is actually more relevant now than ever before because it brings together two concepts that are central to what is driving change in business today: the marriage of digital technologies with best practices for transformation. Taken together like this, the sum of the two words is greater than the parts.
The financial services industry is ripe for digital transformation and momentum in this direction has been increasing for some time. Pressures on profitability arising from the cost and inflexibility of old, paper-based models that often rely on branches and a physical footprint are being coupled with increased security requirements. As such, the need is evident for evolved business processes and demand for new customer-facing services in order to continue to grow. Download our white paper to learn more about the challenges and results of digital transformation in four specific areas for financial services.
In many respects, digital transformation efforts really shine when it comes to the bottom line because new technologies offer many opportunities to reduce cost quickly. Impacts can be realized in both short-term variable costs as well as long-term fixed costs.
Digital transformation makes it possible to increase analytics functions which leads to greater insights for new or enhanced products and services that can help grow revenue. And current economic conditions and a consistent pace of change makes it critically important to relentlessly pursue efforts to enhance enterprise efficiency.
Risk is always job number one for financial services firms, and new technologies afford the opportunity to tackle the issue head on. The adoption of new, flexible technology alternatives allows enterprises to “rip the band-aid” off of existing, jury-rigged solutions and adopt a modern and holistic security posture.