Banks have been undergoing digital transformation longer than most industries.
of financial services leaders strongly agree that their firm’s digital vision is clear, comprehensive, and used to guide strategic decisions
2/3
2/3
are housing most of their infrastructure in the cloud (healthcare is double that)
The top barrier to capitalizing on digital trends, according to financial services leaders: “too many competing priorities”
Financial Services &
Digital Transformation
Financial Services &
Cybersecurity
Financial Services &
Productivity
Financial Services &
Managing Talent
It’s why they score highest in digital maturity compared to other sectors. Now, there are new fintech startups leveraging tech that can be more agile, presenting a serious threat to traditional banks. In fact, 79% of operations leaders at North American banks believe that their bank’s existence will be threatened if they don’t update their technology to innovate more quickly and efficiently. Banks think about digital predominantly as channels and interactions, but need to think of it as a way of doing business and structuring their operations with the customer at the center.
Dive into the digital issue
42%
42%
15%
Dive into the Cyber issue
However, it is not immune to attacks. In January 2017, $1.8 million was stolen from The National Bank of Blacksburg. The technical forensics investigation revealed the attackers accessed the system with a single, malicious Word document.
Even if a bank has offloaded cyber risks to third parties through managed services or insurance, it is responsible for constantly evolving its enterprise-level strategy—and that includes building a culture of resiliency that takes considerable time, thought, and investment into infrastructure, backup solutions, accurate mapping of network and dependencies, planning for the right redundancies, and continuous scenario planning with interdisciplinary teams of IT and business operators.
The financial services industry is ahead of the curve with cybersecurity.
Dive into the Talent issue
There aren’t enough employees with the technical skills to help the financial services industry stay competitive digitally, as 62% of senior leaders believe the digital talent gap is widening—a higher percentage than any other industry surveyed. The industry is competing with other sectors for tech talent, including Silicon Valley. While banks can pay to attract top talent, engagement and the right experience are what make employees stay—and old-fashioned org structures, stubborn departmental siloes, and outdated workplace tech can quickly drive top talent away from the financial services industry.
Across the board in financial services, there is a war for talent.
Dive into the productivity issue
While banks are recognizing the importance of productivity—it ranks as their No. 1 priority—they are only making incremental progress. But even prioritized efforts are undertaken with the assumption that a 50% efficiency ratio is the lowest floor to hit. We think they can go even further: Robotic process automation is bringing new capabilities and eliminating paper-based processes, and even more opportunity exists for banks in retraining their workforce in light of newly gained efficiencies. There are also other levers to pull, such as organizational design and process optimization, to weed out the activity that creates more busywork than value.
The opportunity for productivity gains has never been more ripe.
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When we asked how focused organizations' cybersecurity strategies are on the critical functions of their business, there were mixed results
Extremely focused
somewhat focused
not very focused
Compare to other industries
CONSUMER & INDUSTRIAL PRODUCTS
Healthcare
Energy & utilities
Financial Services
46%
45%
9%
69%
30%
1%
The finance industry experienced a 20% decline in MBA graduates between 2007 and 2013, while the percentage of graduates going into technology careers doubled over the same period
20%
Combining human interaction with self-service digital technology results in a
revenue increase
reduction in branch costs
The main causes: “too many bureaucratic tasks” and “spending too many hours at work.”
40%
back to top
back to top
back to top
Physician burnout
WMP.com/fresheyes
51%
2013
2019
18%
14%
There will be a 14% net gain in jobs among companies that deploy AI wisely. These companies will also increase revenues by 34% by 2022.
15%
35%
46%
45%
9%
69%
30%
1%
42%
42%
15%
Extremely focused
somewhat focused
not very focused
When we asked how focused organizations' cybersecurity strategies are on the critical functions of their business, there were mixed results
Compare to other industries