It’s no secret that digital transformation is vital to companies across all industries. In particular, banking, finance and insurance companies experience unique trends compared to other businesses. One reason for this may be that with their access to people’s sensitive personal and financial information, it’s important to have up-to-date technology and know how to protect their clients with the latest solutions.
Simpler Media Group, in partnership with HCL Technologies, surveyed 600 customer experience (CX) and digital experience (DX) professionals to uncover trends in digital transformation. The data uncovered fascinating differences between companies overall and companies in the banking, finance and insurance industries. For example, companies in these industries are generally seeing a higher budget set aside for digital transformation, with 88% saying their budget is increasing in the coming year. In fact, almost half of them (49%) say their budget is increasing significantly, compared to only 42% of respondents overall who said the same.
The Features These Industry Members Want in Their Tech Stack
Compared to respondents overall, banking, finance and insurance companies are more likely to say they’re increasing spending on staffing and internal proprietary systems, according to the survey. They’re also more likely to say that easier-to-use content creation tools are an important consideration when choosing a new platform (74% vs. 65%). This tells us that unique content is especially important for these companies, perhaps because it serves as a differentiator for potential customers trying to make a decision on who they should trust with their finances.
Companies in these industries also care more about the brand and reputation of the tech provider than respondents overall (56% vs. 46%). One potential reason for this is that in an industry where customers must trust you with their money, you need to find trustworthy partners. A breach in trust in these industries can greatly harm a company’s reputation.
Addressing Unique Industry Barriers
Because of the complexities of the business, organizations in the banking, finance and insurance industries face unique barriers to achieving digital transformation. Essentially, many companies find that their use cases are so unique that basic platform functions aren’t enough.
Significant customization is required for implementation for many platforms for these industries, according to the survey. Another challenge is that it’s time-consuming to successfully implement any necessary customization. The most helpful solution for organizations facing these barriers is an affordable platform that allows for the necessary customization and is flexible enough to integrate with the rest of their technology ecosystem.
The Perks of DX for Banking, Finance and Insurance
Digital transformation can greatly improve the digital customer experience — a fact that is especially helpful for banking, finance and insurance organizations. Most respondents (59%) in these industries said the increased customer loyalty and engagement was the top outcome of their digital transformation efforts of the past two years (compared to only 44% of respondents overall).
Companies in these industries were also more likely to report other metrics related to the customer experience, including increased signups, new customers and improved customer success and retention. This tells us how vital customer experience metrics are to the success of these organizations, compared to more operational metrics.
Our survey suggests that organizations in the banking, finance and insurance industries have also seen success in employee relations in the past few years. When asked how labor mobility from the Great Resignation has impacted their organization's digital transformation plans, most (61%) said it has impacted them positively. Only 53% of respondents overall said the same. With this information we can surmise that organizations in these industries have been able to hire the talent they need to successfully implement their digital transformation plans.
Everyone Wants Digital Transformation
Digital transformation is important for organizations in any industry — in fact, the survey found that 85% of respondents overall say CX digital transformation a high or critical priority. Still, this transformation will look different to various kinds of companies. For banking, finance and insurance companies, customer experience is king. They need platforms and solutions that allow them to retain customer trust and cater to customers’ unique needs. Follow the link below to learn more about HCL’s survey findings.
For more insights from the “A Future-Proof Guide to Digital Transformation Trends” survey, click here.