New research from Boston Consulting Group and Salesforce has revealed the best way that FSIs can harness modern technology platforms and work practices to accelerate digital transformation.
Created in collaboration with leading financial institutions in Australia, the new research looks at the shifting external and internal pressures facing FSIs, and the urgent need to drive greater efficiencies and strong outcomes from technology investments and transformation efforts.
Three fundamental mechanisms were highlighted that are set to help FSIs better extract value faster and cut costs:
Orchestrate around the customer and clarify the path to value creation.
With more than 30% of financial institutions embarking on a transformation losing sight of the endpoint during delivery, the research shows that FSIs need to combine long-term strategic planning with clear incremental delivery.
Empower the organisation by liberating technology and data.
The report highlights that placing technology back into the hands of business units, supported by efficient platform governance, will make a team more productive. It is said that achieving this will depend on fostering a continuous learning culture when adopting a digital platform.
Design for change and invest to sustain.
Getting the change management right and taking a holistic approach to ongoing platform and team funding will help FSIs achieve maximum value from modern technology platforms.
The research also found that striving for successful transformation goals can come with unexpectedly great results. It was found that 42% of financial institutions exceed their expected value from transformation efforts.
A lack of clarity and cohesion within an organisation when it comes to digital transformation was found to be the biggest challenge that businesses face. The report shows that having a clear roadmap when it comes to digital transformation can significantly improve overall business outcomes.
Continuing on the point that over 30% of financial institutions embarking on a transformation end up losing sight of the end point during delivery, the research goes on to state that an alternative approach to technology transformation is needed – one that combines long-term strategic planning with clear incremental delivery.
The report ends by highlighting that to reset the balance in favour of business value, financial institutions must change how they view a technology transformation.
It states they must dedicate 70% of their efforts to understanding business processes and outcomes and the technology required needed to support them.
The remaining 30% of their efforts should go toward putting the appropriate technology platforms in place.
It is said that by viewing technology as an enabler rather than a provider, financial services firms can unleash the full power of their technology to delight customers and unlock greater value for the business.