Banks’ Digital Transformation Pace Is Too Slow for Consumers

Around half of financial firms report that they are still in either the beginning or implementation stage of digital transformation projects.

For many financial institutions, the pace at which they are pursuing digital transformation is not moving fast enough to meet consumer expectations.

That premise, based on research by consulting firm and financial technology provider Broadridge, calls into question a commonly accepted notion in banking. Namely that the pandemic resulted in great strides in digital transformation.

The pandemic certainly did lead to big advances in usage of digital banking, as well as many new customer-facing innovations. Yet two factors have slowed the momentum: the need to change processes and technology end-to-end within banks and credit unions, and the fact that consumer expectations don’t stand still, but keep moving upward.

In a survey of 750 C-suite executives at financial services companies about digital transformation, half of the respondents — which included execs from retail banks, insurers and others — said their company was either a “beginner” or “implementer” when it came to digital transformation. Only 21% cited themselves as “leaders.”

Digital transformation projects around “customer interactions” topped the list of planned goals over the next 1-2 years.

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