It likely comes as no surprise that digital technologies and capabilities are a critical growth driver for financial services organizations. Banks everywhere are working to drive growth through digital technologies. The Royal Bank of Scotland is doing it in grand style, investing $1.7 billion in mobile technologies, estimating that at least half of its transactions will take place via mobile channels within four years. Many other providers are signing on for Apple Pay, ensuring they keep pace with the expected mobile transformation it will bring to payments.
For finance officers, digital plays an increasingly important role as well. Our study shows 88 percent of finance leaders have felt the impact of big data and analytics, and 84 percent have found digital technologies making inroads. The advance will continue: In the next two years 85 percent of CFOs expect to increase investments in various technologies, including cloud, big data, mobile and social media.
But digital doesn’t mean slapping on some interactivity or adding mobility. Some banks have struggled to identify the right technology—tools that will add value and enhance offers and infrastructure.
For finance leaders, digital is helpful in traditional ways, but also surprising ways. Some have found digital technology particularly useful around managing risk and compliance. Many banks are struggling with data integration—a problem compounded as new data regulations increase. Our survey found that 40 percent of banks are managing their compliance data using manual processes. Luckily, the trend is changing. Within two years only 11 percent of banks expect that they still will use manual processes. Digital technology can only make the process of data gathering and reporting smoother and more efficient, thus the anticipated increase in digital for banks’ finance functions.
Likewise, insurers are investing heavily in digital technology. Life insurers, in particular, envision big investments in cloud and analytics to generate insights that can help with decision making.
Capital markets players, too, find that digital is helping them improve their data management processes.
Digital technologies, including mobile and apps, increase the data trail, giving providers across the financial services spectrum richer detail that not only supports customer service but aids in compliance and risk management.