To take full advantage of digital technologies, banks need to think like digital entrepreneurs. A deep understanding of digital’s potential, sound economic models and data-driven insights, will allow them to reimagine their digital strategies. Banks that successfully implement internal and external digital strategies can potentially:
Increase revenues by up to 55 percent over the next five years. Digital customer acquisition and cross-selling of new services will be the main drivers of this growth.
Reduce costs by up to 30 percent over the next five years. Process automation, distribution network optimization, application and infrastructure modernization and the use of transaction factories will be critical.
Achieve return on equity of approximately 15 percent in mature markets.
Banks can take three actions to generate more value from their digital investments: