The push towards digital transformation becoming a priority for most of the banks has come from the need to find efficient ways to address the existing challenges in the industry, such as cost pressure, eroding top line, uncertainty & instability in the geopolitical environment, and decreasing customer satisfaction. Banks want to leverage the solutions provided by FinTechs to solve some of these challenges. The rush towards adopting these technologies and getting the solutions implemented is making banks mistake digital projects for digital transformation. Banks need to formulate their transformation strategy by carefully analyzing their operating model, target customers, and focus markets. All compliance requirements, risk assessment, cost implications, and level of quality need to be considered thoroughly before adopting any solution. Taking a modular approach helps in performing these tasks effectively; it also helps gather the learnings to prevent future failures. Transformation is an ongoing process where changes in technology and alignment to goals need to be continuously checked.

Scope of analysis

Coverage across 25+ banking BPO service providers including Accenture, Avaloq, Capgemini, CGI, Cognizant, Concentrix, Conduent, DXC, Equiniti, EXL, Firstsource, Genpact, HCL, HP, IBM, Infosys, Intelenet, Mphasis, NIIT Technologies, Polaris, Sutherland, Syntel, TCS, Tech Mahindra, Wipro, and WNS.

Content

This report will assist key stakeholders (banks, service providers, and technology providers) understand the dynamics of the banking BPO market and help them identify the trends and future outlook. It will help the stakeholders asses their digital transformation strategies/offerings in an environment where everyone is talking digital. Some of the findings in this report are:

• 85% of the banks have digital transformation implementation as a priority for 2018
• 81% banks are only implementing digital projects focused primarily on their front-offices and only the remaining 19% are actually going for true transformation
• Strengthening competitive position, building market share, acquiring & retaining customers, and generating cost savings are some of the major factors for adopting digital technologies
• Market facing front-office processes lead the demand for adoption of digital services, mainly targeting customer experience
• Automation, cognitive/AI, analytics, and blockchain are the biggest levers of adopting digital technologies
• Retail banking has the highest adoption rate for automation, AI and analytics when compared to the other LOBs, except for blockchain, where commercial banking is working towards adopting blockchain at the highest rate

Membership(s)

Banking and Financial Services (BFS) - Business Process Outsourcing (BPO)