Banking on the Next Big Idea


The financial services industry has an excellent track record in leveraging new technologies to drive operational efficiencies. However, it is also slow in introducing new digitalized products and services.

Only one-quarter of financial services companies are making investments in digitalization based on analytical insight. This industry still relies heavily on traditional partner relationships and legacy products or services that have fallen behind new and innovative digital services from disruptors.

Our data clearly shows vulnerability in financial services companies that sit outside the vision-driven quadrant. While long-term industry relationships offer false comfort and security, an undercurrent of new and innovative solutions from digital disruptors is quickly nullifying the value proposition for legacy financial services companies. As consumers catch on and adopt these new digitalized services, legacy companies will either be left behind or removed from the market completely.

>Digital Transformation in a Highly Competitive Market

A Quiet Digital Finance Revolution


The financial services industry is undergoing a quiet digital revolution. The Trasers R&D Compass Guide demonstrates how 50% of smaller businesses and 25% of medium-sized businesses in the segment are born digital. This allows them to deliver more innovation, increase the level of customer intimacy, and drive convenience with digitalized services that are personalized to the customer. In fact, intimacy, convenience, and personalization are more important to consumers now than loyalty to a brand name.

Change in the financial services industry is fragmented across the retail investments, capital markets, brokering services, and wealth management sectors. However, the industry as a whole is formidable. Legacy financial services companies must maintain a high level of awareness and remain sensitive to shifting trends and sentiments, adopting new technology-driven business models and processes to retain industry leadership.


The Most Successful Digital Transformations Are Powered by Analytics Capabilities


Our benchmarking services are powered by over 1.5 million data points in addition to our primary research and data collection capabilities. With access to leaders across more than 40,000 companies in various size segments, industries, and geographic locations, we can quickly gather additional data to address how your business is performing against the competition.

A graph showing which industries are investing the most in digitalization.

Source: Trasers


Data analyzed in this report comes from 4,000+ responses. For the financial services industry, data from 262 companies have been used.


Our financial services industry experts can offer insights into the following sectors:

  • Depository and Non-Depository Credit Intermediation

  • Wealth and Asset Management

  • Capital Markets

  • Investment Banking

  • Private Equity

  • And More

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We help bring our clients’ digital visions to life by providing end-to-end tech capabilities through our technology transformation practices.

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Reimagining the Financial Services Value Proposition


Reimagining the customer value proposition across existing financial service portfolios is essential for reinventing the value chain. Digital-first financial services companies have excelled in this area, resulting in justified paranoia among legacy financial company stakeholders. Many stakeholders feel digital-first disruptors are innovating at twice the speed of legacy institutions, though in reality this is not true. The overall pace of innovation is increasing, leading to greater competition.

Digital-first financial services companies use the cloud, artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) to deliver groundbreaking digitalized finance services. Legacy financial companies still rely on the Highest Paid Person’s Opinion (HiPPO) rather than focusing on data-driven insights, leading to emotional responses to problems that could be better solved via data.

Long-standing relationships, diverse industry networks, and recognizable brand names provide a false sense of security to legacy financial companies. Platform-based, automated, digital process-driven financial alternatives are disrupting the status quo, transforming the customer experience in a way that nullifies the long-standing reputations of traditional finance companies. Customers no longer focus on tried-and-tested brands; instead, they focus on the latest and greatest innovations that streamline their financial lives. Incumbents must digitalize their operations and cultivate greater customer relationships to weather this storm of digital disruption.


Only 7% of Companies Are Delivering on Their Transformational Initiatives


Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).

Digital Enterprise Evolution Model™

An image showing the stages of analytics capability evolution.

Copyright © 2021 Trianz

DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.


Financial Companies Outside The Vision-Driven Quadrant Are at Risk


Financial companies have little room for error when it comes to developing and implementing new strategies. For those financial enterprises that sit outside the vision-driven quadrant, there is a risk of falling behind in the face of new competition from digital disruptors. There is urgency around digital transformation in the financial services industry, but a lack of comprehensive planning and a focused approach to digitalization puts financial services incumbents at risk. This rings true, as our data demonstrates an imbalanced investment in analytics.

Most large legacy financial companies are planning to invest significantly in cloud technologies to transform their operations and value proposition. There are plans for advanced analytics and reporting software, along with robotic process automation (RPA), to transform transaction processing. With ample room for improvement, financial services companies must focus on adopting an integrated and strategic approach to digital transformation to remain competitive.


Human Capital Management (HCM) in The Finance Industry


The finance industry is investing heavily in human capital management (HCM) to deliver better customer experiences (CX). Since the industry is highly unstructured and lacks regulation, experience carries tremendous value in guiding a digital transformation.

The global recruitment marketplace has opened in light of COVID-19, enabling talent acquisition across all four corners of the globe. Similarly, global financial services coverage is easier than ever before, unlocking new revenue generation opportunities. The development of a globally driven work culture and business values, better employee experiences (EX), skills training programs, and teleconferencing or instant messaging capabilities is vital to attracting the right talent.

To join the vision-driven quadrant, CEOs must benchmark their operations in comparison with other leaders in the space. CEOs can achieve this by using models like the Trianz Digital Enterprise Evolution Model (DEEM™). The focus must be on reinventing product-service portfolios, catering to consumer expectations, and optimizing the workforce to work more closely with customers and deliver better experiences.

Experience the Trianz Difference

Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology experiences and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital and security paradigms. Reach out to get in touch or learn more.

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State of Digital Transformation
Worldwide 2020 Report

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Meet Our Practice Leaders

KC Sreeram

Vice President
Cloud & Infrastructure Practices

Brian Collier

Vice President
Digital Practice

Jacob Samuel

Vice President
Digital & Analytics Practice

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