Why Is Digital Transformation A Vital Step For Today’s Banks?

5 August 2019
Why Is Digital Transformation A Vital Step For Today’s Banks?

(FinTech Egypt – Irish Tech News)

An article published on IRISH TECH NEWS sheds light on the importance of digital transformation in banking, using the example of Jack Ma’s four-year-old MYbank that has lent 2 trillion yuan ($290 billion) to nearly 16 million small companies.

The transactions are conducted on mobiles without the intervention of human bankers, with the process lasting less than three minutes from start to finish. Other players such as Tencent, Ping An & Construction Bank offer similar services.

It is basically asserted that if today’s banks are serious about remaining relevant in the market, they must speed up their digital transformation efforts and evolve into the bank of the future. They must reimagine the end-to-end customer journeys and execute designs while keeping in mind the customers to deliver an easy & convenient experience.

In order to accomplish the above, banks need to create a partnership ecosystem to improve their core offerings – as no one can do everything well on their own. They should modernize infrastructures and adopt changes in architecture in order to accelerate the product delivery cycle.

The article notes that according to consultancy firm BCG, global bank revenues will reach an estimated $5.4 trillion by 2022. Incumbent banks, compared with nonbank/FinTech challengers, have not only sustained their position in most markets but have also retained and grown their customer bases through a global population that still give their trust to banks and remain relatively loyal despite more financial alternatives.

         

Article tags:
         Jack Ma, MYbank, Tencent, Ping An, Constrution Bank, BCG, digital transformation, consultancy, m-payment, e-payment

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