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Research Reveals Divide Between Criticality and Confidence

Written by Kathi Whitley | 14 Mar, 2023

In a recently published Digital Banking Survey, financial institution (FI) leaders were asked to rate the criticality of six areas of digital banking technology. They were then asked to rank how confident they were that their FI was effectively delivering on them. The six areas explored include:

•    Using data to enhance or augment the digital banking experience
•    Offering fintech solutions to account holders through digital banking
•    Providing personalized digital experiences to consumer and business account holders
•    Using technology to enhance or create new revenue generation opportunities
•    Gauging the importance of digital innovation to growth strategy
•    Connecting the digital user experience across the customer lifecycle

Across the board, respondents acknowledged the significant power that embracing, adopting, and enabling their brands with technology would have, and are even focusing on digital innovation as part of their growth strategy.

But if the findings of this research are any indication, that’s where it stops. Respondents told us they know using data, offering fintech solutions, and personalizing digital experiences are extremely important, but they have little confidence their organizations are actually doing any of this effectively.

Using data to enhance or augment the digital banking experience
Case in point is Section One. Approximately 90% of respondents said it was either “extremely important” or “very important” to use data to enhance or augment the digital banking experience. However, just 3.75% said they’re “extremely confident” their institution is using data effectively.

The report author, Q2’s Chief Strategy Officer Will Furrer, says FIs aren’t using data mostly because they’re restricted by multiple, disparate, outdated systems. So, integrating data across these systems, then creating and telling meaningful stories with it and taking valuable action on it are problematic for most FIs.

Furrer says to lessen the gap between criticality and confidence FIs need to, first and foremost, realize they’re not going to own the whole data piece—they must align with technology partners that have the talent, experience, and infrastructure to take it on. He concludes collaborating with new people, forming new partnerships, hiring top talent, and building strong and diverse cultures are all critical to improving the digital banking experience.

Gauging the importance of digital innovation to growth strategy
This is the only section in the research where criticality aligns fairly closely with confidence. Some 83% of respondents said digital innovation is either “very important” or “extremely important” to the growth strategy of their institution. And nearly 72% said they’re either “moderately,” “very,” or “extremely” confident their organization is adequately addressing digital innovation as part of their growth strategy.

The key takeaway from these statistics is most FIs have a digital strategy, there is a plan, but when they dissect the plan, it’s problematic to implement. Bottom line, bankers are having difficulty executing on strategy. 

Furrer shares six imperatives for digital excellence. Download “Digital Banking Survey: Examining the Divide Between Criticality and Confidence” for his six imperatives, plus a deep dive into all six sections of the survey.