Co-authors Michael Tang and Hwan Kim (Deloitte) and Brad Carr (IIF) discuss the first report in our new IIF-Deloitte series on the challenges and success factors in digital transformation, Realizing the Digital Promise.
This first report, The Top Nine Challenges to Digital Transformation for Financial Institutions, draws from interviews with more than 60 executives (in particular Chief Digital/Innovation Officers and their C-suite peers), regulators, and policymakers from across the globe, exploring what digital transformation means to them, and the key challenges that financial institutions may experience along the transformation journey. We discuss the key findings in this report, identifying the major challenges that financial institutions face, both internal and external.
We particularly focus on the two challenging sides of partnerships between financial institutions and new FinTech firms: that institutions’ existing processes and policies are not always conducive for onboarding a new kind of partner (and perhaps with new underlying technology), while those fintech firms are not always enterprise-ready or scalable. We also examine the talent question, which we found relates more to retention than to recruitment.
Looking ahead, this IIF-Deloitte series well examine the key enablers for overcoming these challenges, as well as the public policy settings.