Execs view technological disruption as an opportunity, not a threat; Will invest in robotic process automation (RPA), cognitive technologies, data & analytics
Nearly 80 percent of U.S. banking CEOs are increasing investments in their companies’ digital transformation, as the majority believe they are not effectively leveraging digital channels to connect with customers, according to KPMG’s 2017 U.S. CEO Outlook study. The study features results from an in-depth survey of U.S. banking CEOs.
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“In order to keep pace with the expectations of today’s connected consumers, banking leaders realize the need to digitize the entire enterprise – from the back office to the front door,” said Brian Stephens, National Leader, Banking and Financial Services, KPMG LLP. “They are up against some stiff competition from the fintech startups and retailers, and need to be able to offer their customers a much more personalized and mobile experience.”
Technological disruption is an opportunity
More than half of the CEOs polled (53 percent) see technological disruption as an opportunity as opposed to a threat, although 55 percent believe disruption in banking will weaken or eliminate some traditional leaders.
Sixty-four percent of the CEOs polled plan to increase their investment in finding innovative new ways of reaching their customers over the next three years. Those investments will be directed toward robotic process automation (RPA), cognitive technologies (artificial intelligence (AI), machine learning), data & analytics and blockchain. However, 44 percent agree that they are not yet ready to adopt advanced AI technology.
Digital Transformation Presents Challenges for Banks
The CEOs said they are facing a number of challenges as they transform their infrastructure. Thirty-nine percent expressed concern that they can’t base important decisions on their data until they significantly invest in improving their quality. They cite the complexity of implementation (31 percent) and lack of available budget (25 percent) as the biggest barriers to implementing new technologies. Many also said it is difficult to get timely insight and advice on the strategic impact of new technologies.
“Digital transformation begins with enhancing the customer experience but the real payoff comes when they digitize their entire enterprise – using technologies such as RPA to eliminate repetitive tasks and gain operational efficiencies, and so employees can focus on continuing to improve the customer experience,” said Jitendra Sharma, KPMG’s National Advisory Leader, Financial Services, KPMG LLP.
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the independent U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s independent member firms have 189,000 professionals, including more than 9,000 partners, in 152 countries.