Member Article

NTT DATA: Digital Transformation is increasing among financial institutions

New research conducted by IDC, a worldwide leader in market research and commissioned by NTT DATA, a global leader for digital transformation, has shown an acceleration in the growth of investment in digital transformation processes within the financial sector. A study of 1,050 financial institutions worldwide showed businesses most active in the world of finance and capital management are driving transformation, implementing and experimenting with new technologies such as AI and advanced data services. Insurance companies and banks are lagging behind, according to the study, which found about 35% of insurance companies and 47% of banks are still far behind in the financial services market with regards to implementing new digital services.

The study also revealed that, at a global level, the move towards innovation is far more effective in large institutions where a greater number of projects have been successfully tested and implemented. Smaller businesses have to deal with three main problems: the lack of an internal Digital Transformation team of experts, the idea that innovation is more of a cost than an investment and a reduced ability to identify the benefits that innovation brings to the company.

“We are seeing care and caution in terms of DX adoption across UK FSIs, but more often than not culminating in a successful implementation,” said Kim Gray, Head of Insurance at NTT DATA UK, “This methodical approach – coupled with collaboration and widespread workforce engagement – is resulting in increasing success in DX projects, and should not be underestimated.”

“With approximately half of UK FSIs now advancing in their delivery of connected financial services, it is promising to see that we are increasingly recognising how this can contribute towards increased revenues and optimised business processes,” said Josep Alvarez, Head of Banking at NTT DATA UK. “While there are still obstacles to delivering connected financial services, they do not make the end goal unachievable. Privacy, security and regulatory compliance are part of our DNA, and we must work hard to adhere to these steadfast aspects of our industry whilst continuously improving and innovating.”

This was posted in Bdaily's Members' News section by NTT DATA UK .