Lack of IT resources hitting digital transformation

More than half of bank executives think that a lack of available IT resources is slowing down their ability to mature digitally, according to a survey from Liferay.

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Lack of IT resources hitting digital transformation

Editorial

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Liferay quizzed 70 execs about the digital banking landscape, finding that 87% consider technology intrinsic to digital transformation but 56% think a lack of resources in this area is hampering their efforts.

Compliance is the second most cited obstacle that is slowing down respondents' ability to mature digitally, mentioned by 47%, with fragmented data resources named by 44%. Just seven per cent say that they face no significant obstacles.

That said, the number one barrier cited was having different business units own different parts of the customer lifecycle. Asked which unit should own the digital strategy, 41% say it should be a cross-departmental digital team. A third say it should be the bank's C-suite, 14% marketing and sales, 11% a newly created digital department, and just two per cent IT.

Asked about their digital transformation progress, half of respondents say that they are around half way through, with 37% saying that they are beginning to roll out their plan. Just four per cent say that they have completed their digital transformation, while one per cent say they have not even started.

On the omnichannel question, more than half say that they are working on coordinating customer experience across channels but just three per cent say that they have created a seamless system.

Respondents say there is a wide range of barriers to creating an omnichannel customer experience, with 21% citing a lack of back-end integration across systems, 18% the problem of unclear or even competing ownership of the issue, and 16% that there are too many channels and customer journeys to coordinate.

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Comments: (2)

Leon Rees Principal at Markets Etc

Interesting article. I see many transformation programmes citing lack of skilled resources as a risk or issue.

However, the reality is more likely to point to an inefficient governance model that doesn't manage the material risks of digital transformation, compounded by a cumbersome low-frequency change methodology.

Gerard Hergenroeder Retired IBMer and Banking Executive at Payments Shark

If banks radically transformed and modernized their legacy applications, they would free up the necessary resources to enable digital transformation. It is not easy from an HR perspective and takes a special type of executive to commit to radical change.

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