What is digital transformation in financial industry

.docx

School

University of Tasmania**We aren't endorsed by this school

Course

BFA 503

Subject

Information Systems

Date

Dec 17, 2024

Pages

Uploaded by GeneralNeutron2023

What is digital transformation in financial industry1.Is the use of the new, fast and frequently changing digital in financial activities.2.It is also process that financial organizations transform non-digital or manual to digital.Example: Internet banking, online banking, ATMs….The development of digital transformation in financial industry0Digital transformation is a top business imperativeAccording to BDO Middle Market Digital transformation survey was conducted by Rabin research company on april, 2019:+) Nearly 97% of financial services firm are making some sort of inroads on digital transformation.+) 21% list developing a digital transformation strategy as their top digital priority.+) 68% of financial service companies have developed a digital transformation strategy.+) Only 14% of financial service companies are actually in the process of implementing their strategy.+) 54% have developed a strategy, but have not started implementation. The advantage of digital transformation in financial industry1.Digital transformation brings proven and highly anticipated – return of investment.2.Improved customer experience ( leverage data-driven insights, engage new customers, compete for existing customers, streamline process…)3.Operation efficiency top financial service’s long and short-term business goal. It leads to high returns on revenue and profitability.4.IOT( Internet of things), AI ( Artificial intelligence) and blockchain investment heat up5.The rise of regtech: Digitalizing governance and regulation.The disadvantage of digital transformation in financial industry1.Cultivating a strong “ employee experience” is critical2.Strong governance remains a challenge3.Cyber and data privacy needs to be more of a priority4.Growing regulatory pressures and geo-political tensions5.Evolving customer expectations6.Surging cybersecurity and data privacy concernsReferences:

https://www.bdo.com/insights/industries/financial-services/digital-transformation-in-financial-services.https://www.bdo.com/thought-leadership/digital-transformation-survey