The pair’s Digital Transformation Index shows that that UK firms are aware that things are changing and meeting customer demands is going to become more challenging. Nearly a fifth of them were scared that their organisations will be left behind.
Investment in technology to drive efficiency, manage evolving risks and benefit from growth opportunities is seen by banks as “critical for sustainable success”.
Addressing cybersecurity is the top priority for global banks (89 percent ) in 2018, replacing last year’s top priority of managing reputational, conduct and culture risks, which falls to sixth place in this year’s report. Recruiting, developing and retaining key talent (83percent also garners significant attention as banks strive to integrate cyber experts into their organizations amidst a skillset shortage.
The survey of senior executives at 221 institutions across Europe, North America, emerging markets and Asia-Pacific shows that banks are seeking to become digitally mature, completing the transition from regulatory-driven transformation to innovation-led change in order to insulate themselves from future downturns. Respondents indicate that few banks (19 percent ) currently consider themselves as either digitally maturing or a digital leader, but more than half (62 percent) aspire to be one of the two by 2020.
Jan Bellens, EY Global Banking & Capital Markets Deputy Sector Leader, said: “In order for banks to weather the performance challenges that lie ahead, they must prepare for a future led by innovation and technology. The pace of innovation continues to accelerate, and banks must have a strategy in place to ensure their implementation of new technology is effective.”
More than 59 percent of banks surveyed anticipate that their technology investment budgets will rise by more than 10 percent in 2018.
For banks that are beginning to invest or increasing their investment in new technologies 44 percent plan to buy the technology from a third party, while only 17 percent plan to acquire an “entity to onboard” the technology.
More than 70 percent of banks cite strengthening their competitive positioning as a key reason for investing in technology by 2020.
Enhancing cyber and data security is the number one priority for banks, with 73 percent of banks planning to invest in technology to mitigate cybersecurity threats, supporting enhanced cyber and data security as a business priority.
Bill Schlich, EY Global Banking & Capital Markets Leader, said: “Ten years after the global financial crisis, banks continue to experience increased competition from a range of new market entrants and evolving risks that challenge their ability to deliver sustainable profitability. To perform at the highest level, institutions must emerge from an era of regulatory driven transformation and develop strategies to tackle the new evolving risks that are preoccupying the C-suite.”
The company claims that digital transformation will quell end users’ appetite to deal directly with big vendors.
Fujitsu’s UK product boss James Johnston has been explaining why the vendor is shifting more business towards the channel.
He said that Fujitsu’s channel organisation is best placed to fulfil the kind of shadow IT purchases that accompany a digital transformation mindset.
Fujitsu has been making its direct sales reps compensation scheme more channel-centric and handing over accounts from its direct team to partners.
At the same time it is moving resources from its direct to indirect teams.
The ultimate goal is to increase UK channel business from 50 to 90 percent of total sales.
Digital transformation means that more organisations are purchasing shadow IT. Business lines are investing in IT infrastructure to change their business models, he said.
The channel is better positioned to give that level of agility and to team up with software organisations.
Fujitsu’s PC business is tanking and deal with Lenovo is in the offering. But McLean seems optimistic about what is happening on his patch with more than 600 deals registered under a new distribution-led deal registration scheme launched in January, with 30 percent of those being new customers