Banks need to gain a better understanding of the global technology trends in order to meet the needs of the increasingly digital-savvy younger clients, according to auditing and consultancy giant Deloitte.
By 2025, the total spending power of end-consumers will be approximately USD$2.5 trillion in Australia, Hong Kong, Malaysia and Singapore. Of that, about 75 percent will be accounted for by digital natives (Generation Y and Z) and the digitally-savvy (Generation X), Deloitte said in a report.
To better serve their needs, banks have to understand that there are varying levels of digital technology adoption, and also the top technology trends, it said.
While Chief Information Officers have traditionally focused on core delivery and optimization of processes for efficiency, they will also need to be brought in on decisions regarding matters such as business exits, going public, reinvesting or divestments, the report said, outlining the need to respond quickly to volatile and dynamic market conditions.
“Banks are seeing the increased demand of digitalization, but have yet to react in full scale,” Mohit Mehrotra, an executive director with Deloitte Consulting, pointed out.
“Most banks in Asia adopt a ‘Digital Inside-Out’ strategy, focused on investment in internally-driven digital initiatives to better provide traditional transaction banking solutions.
“This strategy may not suffice in addressing the clients’ demand for digital functionality and cost efficiency,” he said.
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