Let’s talk numbers.
In 2017, mobile banking grew by 18% compared with just 9% in 2016 enabling businesses to realign their channels through the phone. This trend of “not-queuing-in-the-bank-anymore” among millennials is drastically increasing.
According to the forecast by the end of 2018 various banks and financial institutions in Scandinavia, the United Kingdom and Western Europe will have half (or even more) of their new inflow revenue in most products coming from digital sales.
With the rapid technological advancement and changes in consumer behavior, banks have 3-5 years at most to become digitally proficient.
A sneak peek to the total revenue of global mobile payment market was astonishing. Annual transaction volume reached $450B in 2016 which more than doubled in 2018 with a total sum of $930B. And the forecast shows steady growth with the expected $1080B by year 2019.
Not so long ago it was announced that JPMorgan, an American multinational investment bank and financial services company, has spent nearly $20B in the past 2 years to scale its technology and prepare itself for the next generation of banking. Its strategy, also known as “Mobile First, Digital Everything” is already showing positive early results.
And this is just scratching the surface. One thing is clear – the urgency of acting on digitalization is acute.
Digital transformation of any enterprise is a herculean task, and you shouldn’t do it alone.
Moving away from offline legacy platforms and into the digital age is no walk in the park. It takes a massive shift in attitude to become “digital to the core”. Well stated in the interview with DBS Bank CIO David Gledhill: “The digital transformation of any enterprise is a herculean task requiring a willingness to embrace cultural change, the ability to immerse the entire organization in the customer journey, and a total commitment to digitize to the core.”
At the verge of digital transformation, banks and, naturally, other industries, need to start from understanding the consumer needs and, ultimately, finding relevant technologies and solution providers across the globe to step up the digital game. Catapult, being already “digital to the core”, finds the most valuable solutions by scouting through 100.000 growth companies across Europe, using advance AI and ML algorithms.
Stay tuned for more industry insights and digital sneak peeks!
Yours, Catapult team.