In all spheres of the banking industry, that one thing that is inherent in them all is the risk and coming challenges for banks – digital disruption. No matter on what topic of banking one discusses such as revamped branch banking or incorporating the voice of consumer and employee, in more ways than one he or she will actually refer to the digital disruption trend that is giving birth to many of those opportunities and challenges.
In all these years, it has already been witnessed, how digitally-driven industries can succumb to disruptions like television, newspapers and publishing. More, those same disruptions in some tangible ways have affected the financial industry as well – much earlier than anticipated. This has laid bare the fact that a lot of financial institutions are yet to prepare themselves for the scope and intensity of the impending disruptions.
As far as technology is concerned, organizations across the world have taken huge and applaudable steps. For instance, fast moving consumer goods (FMCG) companies have created Facebook pages, media houses have replaced their source of revenue from print to that of digital one. There is lot to learn for the banks and other financial institutions from these business practices.
Still, these accommodations to capture newer digital realities account for only a fraction of the shifting value. Its pretty difficult to coerce big business organizations to incorporate greater amount of digitization in the way they participate in their respective markets. This is all the more challenging since nobody can confirm from exactly where and when would the next disruption come.
However, not acting in the living present and lying inert would do more harm than good. This is due to the fact that digital disruptions don’t just devastate evolving technologies, but also how people use various technological devices and platforms. Actually, technological advancements have not only revolutionized the content that are shared, but they’ve also actively started to shape up the manner in which people interact with one another across the continents.
Every little bit of data – like search queries, telephonic conversations, mails, etc – that are exchanged get stored by the help of various technology tools. These tools are such that they can produce as well as utilize information to enhance the different platforms/devices of data exchange. However, the risk of operational setback remains. This would particularly happen because of the large-scale proliferation of data, channels and tools that are active participants in building relationships.
A lot of commenter have notified about the exponential rate of adoption in terms of mobile connectivity. Still, they fall back in talking about the possible implications of such uncontrolled growth of mobile connectivity usage. Even though a part of the global population has been able to take advantage of seamless connections at time and places of their choice, and that many of them think that they’ve experienced disruptions caused by the proliferation of technology, yet in reality they haven’t, not even a bit of it.
Hence, enterprises will have to battle out two-pronged pressure – one from the consumers and the other from the technologists that would direct them to transform themselves. Due to this fact, enterprises will have to understand how they would innovate newer services, control complexity of their systems and risks, connect with their consumer and so on. All these business requirements will depend on how well an enterprise understands the new relationship created by digital disruptions.
Yet, the giant leap will center around general acknowledgement which the banks must respond to. Major changes are about to come, driven by the consumers who feel elated and consider themselves as empowered through new technologies. So, what do these changes imply – a transformative opportunity or an inherent threat? The answer to this question would depend on how efficiently an enterprise can come to terms with digital disruptions.
Stuart Parker is an contributory writer .He is also a financial advisor and guest author for acclaimed blogs. Stuart has been writing for more than five years and helping people to get wise with their money. His interests include attending financial seminars, writing columns related to debt settlement, Debt relief, Debt help and visiting personal finance blogs.