Cisco joined a coalition of organizations conducting global research to provide the financial services industry with an assessment of the impact of digital adoption on corporate performance. In other words, is there a real business case for going digital?
The study surveyed 1,503 providers and conducted in-depth interviews with senior executives from 42 financial institutions, consultancies and technology firms to determine levels of digital maturity. They then created models to assess the impact of digital adoption on the performance of the organization.
Here is what they found. The leaders of financial institutions are seeing that their customers want to manage their money in the same way they now shop, communicate and learn; using digital tools, social media and mobile apps. Most of the industry executives no longer wonder if the financial sector will be caught up in the digital revolution, instead they want to know how they can make sure they are not left behind. It’s no longer about “if”, it’s about “how”.
The business case is now compelling them to move. It’s hard to ignore the data that shows financial firms who have reached an advanced digital stage report an 8.6% increase in revenue, an 11.3% rise in productivity, and a 6.3% improvement in market share. Those that move too slowly stand to lose $79 million per billion dollars of revenue a year—and risk falling out of the race altogether.
This research shows that the customer no longer compares the financial services provider to their peers, but against Amazon and Google. They want the same experience and ease of doing business they are accustom to from retailers. Digital transformation is now essential for banks, wealth management firms and insurance companies to survive.
The good news is that Cisco’s Financial Sector Industry Solutions Group has developed a defined set of plays that our partners can take to market to help customers with their digital transformation. The Digital Branch enables Financial firms focused on improving operational efficiency, reducing costs and simplifying the network in branches, at the same time decreasing time to market for new products and services, improving the customer experience, preserving profit by reducing preventable losses such as theft, fraud, vandalism, abuse or misconduct and enabling customers and employees with wireless access and mobile tools, experiences and interactive technology – all within a secure and compliant environment across all FSI locations.
Workplace Transformation empowers employees with the right tools and information, something as simple as hosting a meeting via Webex – or sharing information via Spark. It allows experts to connect with customers to drive new business (remote expert). And in terms of defining new business models, the collaboration afforded by workplace transformation can creates an environment that is collaborative and more innovative.
Join our next Financial Sector Industry Partner webinar on April 12thwhere ESI Thought Labs will join our industry experts in an in-depth review of the research mentioned above. Go to the Industry Transformation Partner Guide to register.