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BizReport : Research archives : December 14, 2016

Digitization of customer-facing processes essential for banks' survival

More than half of those working in banks globally believe they will lose significant market share if they do not digitize their client-facing processes, according to a new report by Finextra Research and digital transaction management reference company, Connective.

by Helen Leggatt

The survey of 114 people, including chief executives, CIOs, heads of digital banking and innovation managers, working for 104 banks and payment firms across 29 countries found that more than half (54%) "agree" or "strongly agree" that they will lose market share to digital-only players and "have no business left in three years" if they do not digitize client-facing processes.

The majority (88%) of banks believe they must rapidly improve the digitization of processes to at least have a fighting chance in winning business from Millennials.

According to the report, the barriers to digitization are "many and varied", but more than one-third of those surveyed believe that the lack of a strategic roadmap and difficulties in finding the right business owner or sponsor are the biggest hurdles.

Two-thirds (66%) of all respondents "agree" or "completely agree" that customers want to have the same insight (view) and access to data as their bank or insurance company and about the same (64%) believe that customers prefer simplicity over a rich user experience.

"Interestingly, 48% of all survey participants agree or completely agree with both statements. To address both these needs, financial institutions need to create digital interfaces that provide common functionality within just a few clicks, while also intelligently adjusting functionality to customer behavior and preferences and transparently presenting back to the customer useful insights based on their own data," says the report, 'Digitize or disintegrate - Exploring the need for banks to extend digitization across all customer interactions' (full report).

Tags: banking, digitization, financial technology, research, technology, trends

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