Bengaluru: Digital transformation in the banking industry has a long way to go as a new report has revealed that even today only 17 per cent of banks have succeeded in digitally transforming at scale.
Legacy technology and system integration challenges are perceived as the biggest barriers to digital transformation, followed by time and costs required to bring concept to reality, according to the report by Infosys Finacle and Efma.
More than 350 banks and financial services companies globally took part in the 2019 edition of the “Innovation in Retail Banking” report.
The majority of banks are not confident about how digital transformation has successfully impacted their organisational objectives. Only 39 per cent of banks believe their digital transformation strategy has had a high or very high impact in accelerating product and service delivery and 33 per cent say it has helped enhance innovation processes, showed the findings.
The research, however, revealed that the industry is increasing investments in mobility, advanced analytics and open banking application programming interfaces (APIs).
These technologies are expected to make the biggest impact on banking in the next 12 months. More than 75 per cent of the banks said open banking will attract a lot of new investment.
While banks expect mobility, advanced analytics and open banking APIs to impact their business the most in the coming year, most are not ready to apply these technologies to create expected business outcomes, said the study.