Digitization is challenging the very way banks operate. The digital revolution represents both a disruptive force and an opportunity for the industry.
I agree with McKinsey experts, when they conclude that this isn't just an IT problem; it's a real business problem that demands an understanding of what new digital business models are possible in the ecosystem. Businesses are increasingly focused on technology as an important enabler of revenue growth, and moving way beyond viewing it merely as a cost. The Gartner/MIT CISR survey found that 45% of IT executives see growing revenue through improving digital capabilities as a top priority.
Consequently, banks must change the way they identify, develop, and launch new technology-enabled business initiatives.
Customers are quickly learning from the early digital disruptors Amazon, Netflix, Uber that have now become mainstream and they now expect both personalized and proactive service. No surprise then, that banks must deliver flawless experiences even before the expectations are clearly expressed. At the same time, banks are faced with increasing regulatory demands as well as pressures for operational efficiency. All of these requirements must be met while 75% of a bank's annual tech investment is spent on maintaining legacy systems, leaving only 25% to spend on new technology and innovation.
With digital transformation at an inflection point, banks have only a few years to adapt to the new reality.
"Appreciating the magnitude of the opportunity and the gravity of the threat is vital, but it is just the first step in formulating a winning digital strategy. Digital will touch every aspect of bank operations, from product development to risk management and human-capital management. Successful strategies need to be based on a clear understanding of how digital creates value." -- McKinsey, Strategic choices for banks in the digital age
Check out our latest LookBook - Winning in the Age of Digital Disruption
With digital transformation platform, you don't just add new pieces of digital tech, you create digital value by adopting a flexible operating model combined with time-proven technology. Digital winners have greater flexibility in responding to market volatility, achieve higher cost savings by operating at scale, and can deliver increased return on investment. And, with a digital overlay approach, the platform offers a layer of abstraction that allows you to go digital without a major rip and replace of your core systems.
I made this very point in a recent interview with The Business Debate where I discussed approaches to meeting the challenges that banks are facing effectively and efficiently.
That's where Appian comes in. Banks no longer have to choose between status quo and innovation. This isn't just about replacing a single piece of technology with something new and improved. Instead, it's about wrapping the legacy architecture effectively to create an overlay that enables banks to deliver a compelling value proposition.
Appian, The Digital Transformation Platformô holds the power to:
To thrive and flourish in the long run, smarter businesses will need to focus not only on the applications needed now, but also have a clear vision for future requirements and implement technology appropriately.
I invite you to visit our Banking resources center to see how Appian enables banks to achieve real transformation, and deliver business impact in the age of digital disruption.
Vice President, Global Banking and Capital Markets
Appian helps organizations build apps and workflows rapidly, with a low-code platform. Combining people, technologies, and data in a single workflow, Appian can help companies maximize their resources and improve business results. Many of the world’s largest organizations use Appian applications to improve customer experience, achieve operational excellence, and simplify global risk management and compliance.