Other parts of this series:
In my first post on the digital readiness of financial services institutions (FSIs) in Europe, I discussed where they are falling short. New Accenture research, detailed in our European Financial Services Digital Readiness Report, illustrates that banks and insurers understand that going digital must be a key component of their growth strategies. Yet, FSIs are significantly behind digital disrupters in four key areas of the business spectrum in our Digital Readiness Index: strategy, or planning; production and delivery, or making; customer experience, or selling; and corporate culture and operations, or managing.
What’s the real-world impact—today—on FSIs?
Even though many top European FSIs have developed partial plans to integrate digital activities into their businesses, that approach often leads to only myriad isolated, unconnected initiatives. Those FSIs do not capture the value that structured, holistic plans would.
For example, our research found that while most FSIs’ corporate strategy includes a digital component, only 37 percent have a dedicated digital transformation budget. In addition, although 81 percent of FSIs highlight their work with start-ups and universities on digital topics, fewer than 60 percent have open innovation initiatives or use digital technologies in their product development process. And despite the online and mobile presence that many FSI have established to engage clients via social media, only 39 percent of them have C-level executives participating.
But those few FSIs that scored well in planning, making, selling and managing in our Digital Readiness Index tended to:
- Have lower cost income ratios.
- Generate higher return on equity.
- Strengthen their share price. Since early during the second half of 2013, the share price of companies that are leaders in digital readiness have outperformed the share price of other companies, and that gap has widened since mid-2015.
Next time: Quickly overcoming obstacles to digital readiness.
To learn more, read: European Financial Services Digital Readiness Report