Digital transformation trends in the retail banking industry

22 November 2021 Consultancy.eu 2 min. read

Global strategy consulting firm Roland Berger has released the 2021 edition of its annual Retail Banking Study, shedding light on the latest trends and developments in the retail banking scene. A round-up of the study’s key findings (in six charts) in the area of digital transformation.

The retail banking industry was already stepping up its digital transformation efforts prior to Covid-19, but the pandemic has acted as a catalyst and accelerator of digital transformation.

SHORT-TERM REACTIONS TO THE COVID-19 CRISIS

Digital maturity continues to rise, especially in the areas of consumer loans and mortgages.

SPEED OF TAKING OUT PRODUCTS THROUGH DIGITAL CHANNELS

Looking ahead, digital transformation sits at the top of the innovation agenda, with hotspot areas as platforms, digital payments and robotic process automation leading the way.

THE KEY INNOVATION TRENDS IN RETAIL BANKING

Not surprising then is that nine out of ten retail banks surveyed plan to increase their digital transformation and technology budgets for the coming years.

INVESTMENT BUDGETS FOR DIGITAL TRANSFORMATION

However, when it comes to realising innovation, technology – in the firm of legacy IT – is at the same time earmarked as the top internal barrier to achieving results.

OVERARCHING BARRIERS TO INNOVATION

The availability of IT talent is regarded as another key success factor for driving innovation, with data analyst and IT developer now both in the top five most in-demand roles for the coming years.

FUTURE IMPORTANCE OF ROLE PROFILES

Commenting on the study, Sebastian Steger, a partner at Roland Berger (and the lead author of the report together with Sven Kuonen) said: “Banks that fail to drive their digital transformation forward across all areas of the organisation and do not add supplementary offerings and services will find it increasingly difficult to remain competitive.”

“Retail banks must also act now in order to not be superseded by big tech companies or fintechs.” Taking a customer-led design approach should be at the heart of all digitisation efforts: “New, innovative solutions should be built along the entire value chain to deliver a leading customer experience.”