The two key components that form the core digital movement are a) digitization and b) digitalization. While Digitizing entails transforming into digital format anything which is currently manual or paper-based, Digitalizing is a whole new way of thinking creating a paradigm shift. These revolutionary processes enable banks to explore and experiment with disruptive technologies and business processes such as AI, Blockchain, Robotic Process Automation, and Cyber Security to design best-in-class BFSI services.
Customer expectations of technology continue to evolve – and for those in the financial services sector that means action has become an imperative. Although digitalization promises robust security and cost-efficiency, its true potential lies in delivering “value” to customers. A Bank’s ability to manifest opportunities out of the disruptive environment based on Technology and external partnerships to create customer value will determine its success in the future. In response to the evolving forces of customer expectations, regulatory requirements, technology, demographics, new competitors and shifting economics, much of the landscape is changing significantly.
The entry barriers to traditional Banks have been disrupted with new specialized entrants and emerging business models blurring the lines between business and technology. The traditional approach to creating value in Banking through growth and efficiency and advantages realized through acquisition, new markets and product offerings seem short lived.