How Digital Technologies Are Transforming Financial Sector?: Organizational Agility

How digital technologies are transforming financial sector?
Digital transformation (DT) in the finance industry is a concept which has now become part of a
successful business strategy rather than just technology. Digital transformation has made a
positive impact on business operations in the finance industry. It has led to opportunities of
faster, cost-effective operations, meeting regulatory deadlines, improved employee and customer
experience and remaining competitive. Consequently, it has now become a business strategy as
opposed to a technology strategy. When you consider how far modern banking has come, you
can understand how DT has grown to benefit everyone with greater convenience and
experiences. From its humble origins of branch offices to ATMs and now mobile apps, the
progress of banking has enabled digital technology to offer greater choice, convenience and
experience.
2018 witnessed an evolution of digital transformation trends in financial services, some of which
are highlighted below:
Organizational agility
Refers to a company’s effective response to disruption, from the last economic crisis. Firms are
looking at ways to improve and support innovation but through efficient means.
Increased collaboration
An increasing number of industry-wide businesses adopt team structure as an operational model,

emphasizing the need to work collaboratively and communicate effectively. They must do this
by working according to regulations and standards
Risk assessment
Firms that place importance on large volumes of data pertaining to collection, storage and
analysis are thereby improving their compliance management.
How digital transformation is impacting business, individuals and society?
Business
The digital transformation is having a wide-ranging impact on the business environment,

creating both opportunities and challenges. Inter-related trends such as e-commerce, big data,
machine learning and artificial intelligence (AI), and the Internet of Things (IoT) could lead to
large productivity gains for the economy. However, disruption to existing business and social
models, as well as established markets, will disrupt the lives of millions of citizens. To make the
best of these changes it is necessary to plan ahead, so that the right policies and institutions are in
place as soon as possible. There is a collective need to pull together good analysis and evidence
at the outset and to support the development of digital policy responses in areas such as
competition, taxation, and trade.
Individual
Whilst employees have more freedom than ever, some criticize the requirement for additional
admin, in terms of reporting. As example most Chief Human Resources Officers will have been
experiencing digital HR transformation, and will be equipped with tools / digital dashboards that
measure and forecast personnel activities that were once difficult to understand and record.
Analysis and reporting on people performance and of those effects on a business is now
undeniable. As a result, this has improved interaction and relationships with HR and business
leadership. There is no doubt that digital tools have a positive impact on workforce optimization
and communication; results include business objectives being achieved more efficiently or more
quickly, budgets are preserved and bottom lines are increased
Society
how can digital transformation make a positive contribution to society? We have focused on
three key areas:
Employment and skills
Current estimates of global job losses due to digitalization range from 2 million to 2 billion by
2030. There is great uncertainty, with concerns also about its impact on wages and working
conditions.
Environmental sustainability
The historic trend holds that for every 1% increase in global GDP, CO2e emissions have risen by
approximately 0.5% and resource intensity by 0.4%. Current business practices will contribute to
a global gap of 8 billion tones between the supply and demand of natural resources by 2030,
translating to $4.5 trillion of lost economic growth by 2030.
Trust
Social media, radio frequency identification (RFID) tags and user-generated websites such as
Trip Advisor have been instrumental in increasing transparency and overcoming information
asymmetries. However, according to the Edelman Trust Barometer, trust in all technology-based
sectors declined in 2015, with concerns over data privacy and security a key factor. Broader
ethical questions about the way organizations use digital technology also threaten to erode trust
in those institutions.

How Digital Technologies Are Transforming Financial Sector?: Organizational Agility

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How Digital Technologies Are Transforming Financial Sector?: Organizational Agility

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How digital technologies are transforming financial sector?

An increasing number of industry-wide businesses adopt team structure as an operational model,

How digital transformation is impacting business, individuals and society?

The digital transformation is having a wide-ranging impact on the business environment,

Employment and skills

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