40% of banks lack a sustainable digital transformation strategy, finds IDC

40% of banks lack a sustainable digital transformation strategy, finds IDC
Slow nature of organisational change makes innovation in banking difficult

Elly Yates-Roberts |

A new report from International Data Corporation (IDC) titled IDC MaturityScape Benchmark: Digital Transformation in Banking Worldwide, 2018 has found that nearly 40% of banks have not yet executed a sustainable digital transformation strategy.

What’s more, less than 10% of banks claim that they are in a position to be leaders in innovation or create significant disruptions in the market. The gradual nature of organisational change makes the challenge of transforming from legacy technology and processes in the banking environment more difficult.

One positive to come from the report was that all banks worldwide acknowledge the importance and complexity of transforming their businesses to compete in this new digital economy. Those banks that are succeeding are the ones that recognise the need to embrace transformation at the highest levels of the organisation and follow that up with a frank and accurate assessment of their business goals versus their technological and operational capabilities.

“Banks no longer have a choice but to transform if they want to become more responsive to today’s and tomorrow’s markets,” says Jerry Silva, director, Global Retail Banking at IDC Financial Insights. “Those banks that have committed to digital transformation at the board and C-suite level are already creating disruptions that are taking the industry to business models beyond banking.”

To read the full study, visit www.idc.com/getdoc.jsp?containerId=US43312417

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