Digital transformation is one of the most important changes that the financial industry faces these days. This transformation radically changes how banks and insurance companies interact with their clients, what products are offered, how they operate internally, and where and how value is created. In order to prepare for this landslide transformation, companies must adapt their organizations to facilitate change.
Becoming digital centric is a must
Digital transformation has changed the world. The ubiquity of the Internet and the extremely rapid expansion of increasingly versatile smartphones have disrupted the way consumers interact with several industries. As mentioned in our recent digital transformation study, from entertainment to the car industry, almost no sector of the economy has been left out of the digitalization wave.
Financial services are not an exception. The way customers interact with banks and insurance companies has changed: according to Eurostat and The Financial Brand, as much as 40% of banking customers in the EU are active online banking users. That number rises to 61% in the US. We expect this number to rise to 83%–89% in the EU by 2020.
What we expect from financial institutions has also changed. Brick-and-mortar institutions are becoming obsolete quickly. According to a survey among European youngsters, 70% would rather go to the dentist than visit a bank branch. Today we do most of our transactions online (In Spain, 65% of online transactions versus 35% offline for the average online user, estimated for 2015), but most of our purchasing offline (75%). However, that is likely to change in the future.
To continue reading the report in PDF format, please use the download button.
