Nothing is new about digitization impacting our lives, our world, our products and the way we conduct business.
We might be in the thick of the change, but the digital revolution’s genesis emerged decades ago.
Some companies (consider photo and media) were impacted long before the rest of us; their products were directly affected by available technology and the forced transition was nothing less than necessary.
Other sectors (consider banking and finance) were not forced to manipulate their product and/or service as quickly and dramatically. Of course, these sectors did eventually respond to the revolution.
Think about the many aspects of your banking, alone, that you operate digitally: transfer money, open new credit cards, set geographic permissions for cards, consolidate date, invest, the list goes on. Even at the most superficial level, there is little you need to do, inside of a bank anymore.
Consumers are deeply emerged in the access of all things in the palm of their hands, at the touch of a finger. Any industries untouched by the revolution will not stay unchanged for long.
Many banking institutions and finance firms have caught onto the trends, already, and smartly so. There is no worse fate than turning a blind eye to long-term evolution in favor of short-term profit margins. This is a call for all industries, and more specifically banking and finances, to turn their attention to digitization, to turn up the creativity on innovation and to join the world in making all service extensions accessible online and on the go.
Financial Services in the Future
McKinsey recently predicted that that any legacy financial services company could watch 20-60 percent profit declination over the next eight years should they fail to grow in the wake of digitization. Those numbers paint a dark picture of the projected financial sector’s future, but they also suggest this gap space that has to be filled by somebody, some company.
As consumers turn away from traditional banking and toward digital solutions, who will serve them? Whether it is a new company entering the playing field or a long-time company opting to lead the digital revolution, one thread is consistent: financial services are going digital.
What will CEOs do?
CEOs are changing their course of sail. Methods and habits that have long time propelled success, stability and big profits are no longer promising. Leaders are shifting their goal orientation from short-term to long-term. Resources are needed for investing in innovation, whether it is stemming from the ground internally or funding a finance startup.
The more resources (time, money, leaders) that banks and finance institutions can dedicate toward better understanding emerging technology, the more immersive that technology can become in the industry and in consumers’ interactions with the respective brands.
Investing in Technology is only the Beginning
Investing in technology is a necessary start, but it is only the beginning. Financial institutions can start their transition by acquiring startup financial technology companies and implementing automated software programs in their business processes. Once the ins and outs of the technology are understood, companies can begin to innovate around the absorbed knowledge and executed practice. Innovating internally will be the key to leading the digital revolution and playing a major role in how finance evolves amidst the turn to the digital sphere.
Consulting firms NYC advise finance CEOs to look to the future, planning for fifty years out instead of five. If you have begun embarking on this growth or you would like help getting started, consider our business intelligence consulting services at Quantum FBI. Our experts are well-trained, highly experienced and standing by to help guide you into digital business success.