bankingciooutlook

Role of Digital Transformation in Banking

Banking CIO Outlook | Tuesday, October 20, 2020

Digital transformation in banking has introduced a consolidated platform that centralizes data and links different systems and departments, removing problems caused by silos, putting security and compliance at risk.

FREMONT, CA: The digital transformation has put traditional banks under pressure to adapt and innovate because of increased disruption from rising financial technologies and customers’ changing demands.

Banks have to revamp their strategies and invest in disruptive technologies to navigate and capitalize on various digital banking obstacles and avenues.

Here are three issues and opportunities of digital transformation in banking:

Top 10 Digital Banking Solution Companies in Europe - 2020Shift from Legacy to Modern Applications

The shift from disparate legacy banking systems to a digitally connected landscape can be difficult, requiring expensive investment for essential applications, custom processes, integration with external systems, security, and maintenance. Additionally, employees need to be trained and regularly updated to maximize the investment and obtain higher value from it.

With centralized platforms tracking security and compliance, modern technologies are more secure and aligned with compliance requirements. Putting customers’ data and privacy as the main priority will build their confidence in the organization.

Breaking Down Silos and Preventing Risks

Various bank departments use different systems for their tasks, which leads to growth restriction, scalability, and lower customer satisfaction. Digital transformation in banking has introduced a consolidated platform that centralizes data and links different systems and departments. This removes problems caused by silos, which can put security and compliance at risk.

Securing Social Media Communications

Banks can introduce their social media strategy by stressing on streamlining communication with their customers. Although using social media speeds client communication, it also brings some hindrances such as security and compliance.

Communications need to go through a centralized monitoring system that instantly identifies infringement of corporate policy and prevents them before it worsens.

See Also: Top Digital Transformation Solution Companies

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