by MTHULISI SIBANDA
JOHANNESBURG – RADICAL changes in customer demands, regulatory requirements and competitive environments fuelled by digitisation are forcing banks to replace their online and mobile banking solutions.

Traditionally, banking is known as a conservative sector.

“Being change adverse is not an option,” said Stessa Cohen, research director at Gartner, the global research and advisory firm.

“Bank CIOs planning to acquire a new digital banking solution must decide between two types of digital banking solutions: multichannel solutions or digital banking platforms.”

Cohen was speaking ahead of the Gartner Symposium/ITxpo taking place in Cape Town from September 17 to 19, where international analysts will address the challenges and opportunities of digital transformation.

Banking and Investment Services will be a key sector focus at the summit.

According to Gartner, to succeed, chief information officers (CIOs) must choose an approach that supports their banks’ strategic priorities, and the ability to be sensitive to customer needs, goals and other requirements.

The multichannel approach is hailed as a good fit for banks that are still rooted in the traditional banking business, and have not yet tackled the cultural and organisational changes required for a digital banking transformation.

“When CIOs decide to prioritise cost efficiencies, it does not mean that they are opposed to digital transformation per se,” Cohen added.

“They simply acknowledge that transformation — at the moment — is not the primary driver of the business and that the organisational  culture is not ready yet for the demands and challenges that a digital banking platform brings.”

Additionally, the multichannel approach is not a one-way street, according to the expert.

“It is a partial foundation for future steps toward real digital transformation,” Cohen said.
– CAJ News