In 2015, TCS sponsored a research project with IDC to better understand the digital transformation strategies at retail banks and credit unions. IDC conducted in-depth interviews with business and IT executives for insights on how they were using digital technologies like big data and analytics (BDA) mobile, cloud, and social business to grow the businesses.
A high level synopsis of findings from the IDC research can be viewed in the video below:
More in-depth information about the vital role digital transformation plays in the success and survival of retail banks is provided in the white paper, Key Success Factors for Digital Transformation in the Banking Industry. Digital transformation is key in helping banks break down siloed systems in order to deliver seamless personalized, relevant experiences across the connected customer journey. Some key findings in the report include:
- Cloud. IDC research found that 50% of new applications launched by financial institutions will be implemented on private cloud some institutions are already implementing aggressive “cloud first” policies for all new applications.
- Mobile. Over 50% of customer-facing and enterprise staff applications will be deployed in a mobile-first model in the next five years.
- Analytics. Enhanced analytics capabilities will offer any institution the ability to understand its customer base and make personalized offers based on individual, household, risk, and/or business relationships improving share of wallet with existing customers and attracting new customers through product and service differentiation. Predictive analytics will further enable real-time decisioning to consumers who already benefit from instant gratification at retail stores, for instance, a perfect example of playing a role in the customer journey.
For more insights about the pace of digital transformation in retail banking, roadblocks that need to be addressed, and guidance on how to engage customers, monetize data to create revenue opportunities through cross-sell and upsell, and support required compliance initiatives, please read the white paper: Key Success Factors for Digital Transformation in the Banking Industry.