These days, regardless of industry, it’s seemingly impossible to have a conversation without artificial intelligence (AI) barging in. While this was a key topic at the most recent GDS Banking Innovation Summit, our discussions also shed light on the relentless pursuit of digital transformation within the financial industry. Amidst the myriad of challenges and complexities, it’s evident that digital transformation remains a top priority, even if it incorporates AI as just a cog in the transformational wheel. Between our own polling and two fantastic keynote speakers, here are three key insights gleaned from the Summit, shedding light on the industry’s unwavering focus on this transformational journey.
In brief:
- The legacy system and mindset
- Digital transformation is (surprisingly) nothing new
- The digital-first consumer
Host, Colin Cosell reveals results from a GDS Banking Innovation Summit poll
Legacy systems and mindsets: the ongoing uphill challenge
Entering the 3-day summit it was anticipated that the audience would want to focus on three key themes:
- Data risk
- Customer experience
- Artificial intelligence
From the get-go on day 1, however, it became clear these themes were merely part of the larger transformation picture. In fact, the very first audience poll conducted during the summit revealed a compelling statistic. Almost half, 46% of respondents, identified “digital transformation/overcoming legacy systems and mindsets” as the foremost challenge looming ahead in 2024. This underlines the industry’s recognition of the formidable hurdles posed by antiquated systems and ingrained mindsets, hindering the seamless integration of cutting-edge digital technologies.
This was compounded by the “all of the above” option which not only encompassed the digital transformation/legacy option but the digital transformation components. It quickly became clear that all aspects of the summit would be under the shadow of this ongoing uphill challenge.
Host, Colin Cosell talks with Francesco Lagutaine of M&T Bank
Digital transformation isn’t the latest craze
While digital transformation has become top of mind for all industries in the wake of the global pandemic, that doesn’t necessarily mean it’s just a buzzword or a shiny new toy. If anything, it’s been a very lengthy journey for many industries – particularly financial services. According to opening keynote speaker, Francesco Lagutaine, Chief Marketing, Communications and Digital Officer at M&T Bank, digital transformation has been an enduring focus at his institution. “We’ve been on that journey for nearly 20 years, and it just goes to show how resilient those legacy systems have been” explained Lagutaine. “But it also shows just how delicate of an industry that we’re in.”
Furthermore, Lagutaine articulated the challenges posed by data intricacies, noting that “this is coupled with the data issue that arises with transformation. We hold the data that dictates and protects our customers’ financial lives, and all of that is stored in our legacy systems.” He concludes, “so it shows how difficult it is to unravel and digitize those legacy systems and why so many banks have been on this journey for so long.”
Day 3 Masterclass speaker, Maya Ogranovitch Scott from Ping Identity
Addressing the Needs of the Digital-First Consumer
In this age of heightened focus on customer experience, it was inevitable to delve into the pivotal role of digital transformation in meeting the evolving needs of the digital-first consumer. To do so, the audience was treated to a Masterclass session with Maya Ogranovitch Scott, Financial Services Solution Manager at Ping Identity. Ogranovitch Scott gave a riveting presentation which highlighted striking statistics that underscore the prevalence of digital interactions among bank customers. According to Ping Identity, 82% utilize digital payment methods, while 30% regularly access their bank accounts using smart devices. This surge in digital adoption necessitates a proactive approach by financial institutions to cater to the preferences of tech-savvy consumers.
The Masterclass also underscored the importance of digital transformation in crafting seamless omnichannel experiences. Financial institutions are striving to create uniform brand experiences across all channels while ensuring robust customer privacy measures. The emphasis lies not only on offering digital services, but also on harmonizing these services to provide a consistent and intuitive experience across various touchpoints.
Ping Identity findings that highlight the habits of digital-first consumers
In Conclusion
The insights from the GDS Banking Innovation Summit paint a vivid picture of the ongoing quest for digital transformation within the financial sector. Despite the challenges posed by legacy systems, evolving consumer behavior, and data intricacies, financial institutions persist in their pursuit of creating agile, customer-centric, and technologically advanced ecosystems. As the industry continues its journey towards digital maturity, these learnings serve as guiding lights, propelling banks toward a future defined by innovation and seamless digital experiences.
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