Digital transformation is top of banks’ to-do lists and the majority are “comfortable” with their transformation strategies, according to new research by Bottomline.
Speaking to Open Banking Expo TV, Teresa Connors, head of bank proposition at Bottomline, said that digital transformation was “top of the shop” for banks and other financial institutions (FIs), which have “a very long to-do list”.
Connors said that while the Covid-19 pandemic had shaped that list, so too have “advances in technology, and meeting and maximising regulatory initiatives”.
The report, ‘The Future of Competitive Advantage in Banking and Payments’, reveals the findings from Bottomline’s research, conducted among 311 banks and FIs across treasury, fraud, operations, product and C-suite in 34 countries globally.
When asked whether banks and FIs are “on track” with digital payments modernisation strategies, Connors said that while 66% “are broadly comfortable with their transformation strategy”, just over a quarter, at 26%, aren’t.
She added: “That’s concerning for many reasons, the most obvious one, of course, is that the digital transformation strategy is the bedrock for success and for future propositions.”
On the latest episode of Open Banking Expo TV, Connors is joined by Ed Adshead-Grant, general manager and director of payments at Bottomline, who spoke about the ongoing issue of legacy infrastructure at banks.
He said that while legacy, by definition, “is a challenge”, digital transformation “is the norm now”, with 64% of respondents putting it as their number one item in terms of prioritisation.
“You need to compete, update, improve customer journeys, while also staying compliant,” Adshead-Grant said.