Fintech Forward Newsletter - Issue 2
24 July 2024
In our last newsletter we looked at the challenges of AI-led digital transformation in financial services and why banks are struggling to deliver meaningful ROI. It's an old (and true) adage that a company's most valuable asset is its people, so what happens when that 'asset' gets fed up with adapting to new tools, platforms and the processes and best practices that accompany them?
As AI accelerates innovation and transforms workflows, it’s crucial that organizations do not forget the core principles of change management. Failing to prepare is preparing to fail, and as we discover in this week’s newsletter, neglecting to build in proper transformation frameworks is leading to burnout and resistance as adoption outpaces adaptation. With global IT spending forecasts being revised down due to ‘change fatigue’ CIOs must consider and mitigate the impact of their next big project on their employees.
US banks struggle with digital transformation
A report from Gresham Technologies indicates that the majority of US banks are lagging in digital transformation, with only a small fraction at the forefront. Most banks struggle with outdated legacy systems, resulting in frequent regulatory fines and revenue losses due to poor data processes. The report stresses the urgent need for banks to adopt advanced technology solutions to enhance compliance and competitiveness.
IDC: Approaches to mitigate digital transformation fatigue
Digital transformation promises efficiency and innovation but also leads to digital transformation fatigue. This occurs when rapid technological changes outpace adaptation, causing resistance, decreased engagement, burnout, and skepticism towards new initiatives, ultimately hindering productivity and innovation.
‘Change fatigue’ sees global IT spending forecast revised down
Following the rush on GenAI implementations, CIOs are holding off on larger scale digital transformation projects and instead focusing on incremental cost savings across departments. According to Gartner, this change is being driven by a conscious slowdown following the major implementations undertaken from 2021 to 2023.
Event
Gartner's Digital Transformation Forum
The Gartner IT Symposium/Xpo™ 2024 conference brings together actionable insight, new technologies and lasting connections to help you navigate disruption, tackle AI and lead your organization.
Webinar
Why fix the legacy spaghetti now?
Watch this on-demand webinar from Finextra on how banks can resolve the issue of working with multitudes of legacy infrastructure and multiple platforms.
Blog
How to create a rich content engine
Content marketing is crucial for banks, playing a key role in building trust and generating leads while being cost-effective. This strategy enables banks to reach a wider audience, improve their search engine rankings, and establish their authority in the financial sector.
Report
B2B Financial Technology Buy-cycle
This report is a data-driven assessment of the unique challenges, attitudes and behaviors that define the buying mindset of senior bank decision-makers. Check out the full report comparing attitudes of senior bank decision-makers with their peers in other industries.