Digital democratization, robotics and artificial intelligence have transformed entire industries over the last two decades. Now it’s the turn of the financial services industry. Although it’s still early, financial services is headed down the same inevitable path to disruption and towards an explosion in productivity and efficiency.
In the next 5-10 years, the productivity of the enterprise will be transformed through multiple technologies, such as Robotic Process Automation (RPA), Natural Language Processing (NLP), or Artificial Intelligence (AI).
Fintech represents a long-term, systemic change in the industry. The only successful way forward is to take a long-term view. The key is to plan for a steady pace of adoption for interrelated technologies rather than focus on individual projects and siloed technological innovations that will not build upon each other.
Over the next decade, size and cost of labor will shrink, and shareholder return and margin growth will come from huge cost reallocation and decline in operations and technology expense, not necessarily from direct new business or new products.
Set the right pace for your technology adoption
Revolutionary fintech change is just beginning, but future technology adoption decisions need to be made now. Watch our video below to explore a map for adopting technology at a manageable pace that will set the background for your enterprise to thrive in a fintech world:
How do you start?
As the video shows, the first step is to improve your “digital quotient” — the extent to which your processes, information, data and activities are in digital form. A high digital quotient makes your path to the cognitive enterprise easier.
To build your digital quotient, take a clear look at your efficiencies and operating model:
- How many processes and activities are digitally accessible?
- How much data is available?
- How much conversion work is needed?
Start by piloting small, focused projects that are clearly measureable and materially understood. Engage your C-Suite and ensure that they understand the importance of building your organization’s digital quotient. They need to support the significant operational and cultural changes that come with becoming an automated cognitive enterprise. This is critical to your organization’s success.
Fintech represents a long-term change in the industry. The only successful way forward is to focus on the big picture and plan for the adoption of interrelated technologies.
Discover more of our thought leadership and recommendations for financial services:
- Read more on the next digital revolution by Simon Moss
- Read more on creating value for the banking customer through technology in Banking’s top value creator in 2020? Technological customer service
- Visit “Reignite Growth in Banking” to download our industry report and read more about the opportunities offered through technological transformation.
- Register to replay the webcast The Future of Growth and the Banking Industry, and download the presentation deck.
Fintech & Innovation Leader
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