Blog > Why CEOs should lead digital transformation at their banks?
Digital transformation is inevitable and its potential, vast. In this post, we discuss the driving factors and why the top leadership should take the reigns of digital transformation.
“While digital banking refers to making available online all banking services, digital transformation is digital banking coupled with a marked change in how banks gather data, understand and interact with their customers.”
5G, cloud, AI, Data Analytics, augmented reality, etc are all technologies driving digital transformation for banks and other businesses. While technology plays a significant role in digital transformation, it is not only a technological shift but an organizational change that encompasses customers, employees, and organizational culture.
For banks, digital transformation is enabled by digital banking platforms, that serve as the foundation for transformation, sometimes aided by artificial intelligence.
Surveys by leading analyst firms agree that the essential elements for a successful digital transformation revolve around leadership. Digital transformation should start at the top of an organization for it to be successful. CEOs are central to digital transformation at banks, as they are uniquely positioned to foster strong collaboration across the business.
Based on our experience, in interacting with banks that evaluate Payjo’s AI banking assistant, we have seen a number of banks where the engagements are led by C-level executives such as Chief Innovation Officers, CTOs, Head of AI/ Strategy, etc. In some cases, we have seen CEOs of very large banks and credit unions join our meetings to see a demo of our intelligent banking assistant and ask questions. While this is encouraging, in a majority of the banks this task is too often being delegated to IT or Marketing departments.
We believe that as organizations realize the tremendous potential for digital transformation to change how we do business and its inevitability, more CEOs will step up in the coming months to take the reigns of digital transformation at their banks.
“While we understand that AI is not an end in itself, it has the capability to deliver specific and measurable outcomes for us in our digital transformation journey,” says Ritesh Pai, Senior President, and Country Head, Digital Banking at YES BANK.
Chatbots are evolving and with great strides being made in Natural Language Processing and sentiment analysis, we expect AI to be a top digital transformation trend for 2019. Analysts predict that 40% of large businesses have or will adopt AI chatbots by the end of 2019.
While chatbots will definitely outperform humans in delivering quick and accurate responses to pre-defined and repetitive questions, it’ll be years before they’ll be able to deal with human emotions.