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Friday, October 23, 2020

Council Post: Digital Transformation And Its Impact On Finance And The Banking System

President – Founder/CEO at VR Group. Entrepreneur, Strategist and Corporate Advisory Specialist. 

During this pandemic, we are becoming aware of the strong need for a massive digital transformation that allows the banking system to consciously and responsibly take care of customers, account holders, stockholders and other investing entities. Computerizing the processes in management and control has already passed. It’s not enough in 2020 when a considerable part of savings and ordinary transactions are being acquired and processed by the new FinTech platforms and hybrid banks, often without holding a banking license. 

Some of the most powerful digital-only banks are Revolut, Chime, N26, Up, Monzo, Nubank and Starling. Many banks are exploiting digital tools, which is satisfying, but not enough until they move away from customer/user management as it happens in ordinary banks, face to face and hand to hand, and in private, corporate and retail sectors.

Digital transformation is the realization pivot of international market globalization and the worldwide economic system. Renovation, synonymous with transformation, is the Trojan horse to access competitiveness in terms of costs and revenues. 

Due to the establishment of hybrid banks, ordinary financial institutions face a retail crisis: workforce reduction, branch shutdowns and the rehabilitation of investments into the capital equipment, digital and scientific, which has almost never been practiced before. 

A Forecast Of The Banking Environment

The most influential private stars — UBS, Morgan Stanley and Merrill Lynch — make up the most impactive roundup, collecting considerable assets. All this represents an important but not outstanding global flow index. A rush of public and private wages, personal savings, enterprise revenue streams and more keep the economy working every second for billions of individuals. 

JP Morgan and Goldman Sachs, satisfying the big enterprises’ needs, offered renovation as a daily wakeup call for all their clients — big data for big strategies and high-performing management. 

HSBC, ranked by S&P as the largest bank in Europe, and Credit Agricole, Barclays, Allianz Bank, BNP Paribas and UniCredit are among the most responsive innovators with high standards. They represent a match between credit and savings management with great execution instruments for enterprises, entrepreneurs and endowed investors. Credit Suisse and Citigroup, with a fair history of asset management for large, medium and small gatherings, have a good vision on wealth management for tailored sustainability.

The main roundup comes from the Far East. With ICBC, CCB, Agricultural Bank of China and Bank of China, China reaches the stronger gathering. The big impact on savings and revenues is offered by a full flowing territory, but it’s still far from considerable compliance for a substantial digital renovation overlooking the world.

The Wall Street Journal reported that, in Europe, savings are being moved to banks that offer higher yields in response to negative rates. While it may not be the right choice, never say never.

Creating A Stable, Sustainable Financial Ecosystem

Regarding the blockchain exploitation in the global monetary system, we can record extreme approval to new realities that improve and take advantage of this cognitive revolution as no one has done before. Among the functional and sustainable systems in the blockchain schemes, we find “Atmosphere Arc.” Born in Italy, AA, an open ledger, is a cluster of internalized data for digital wallets.

Some weeks ago, I offered a quick signal about behavioral economics, artificial intelligence and sustainability through Forbes Councils “Ask an Executive.” The actual banking system offers rare, updated and truthful analytics instruments to enhance your investments and rates control, financial consultants admit. A positive and encouraging analysis of KPMG on digital economy will cheer you up. 

Customers ask for agile and better understanding systems, but the offer is not yet impactful. How is machine learning helping companies in a pandemic? According to a live boost from Venture Beat, it’s increasing agility, optimizing operations and incorporating computer vision.

Profits As Development, Renovation As Financial Empowerment

The public and private environments that are significantly moving in digital transformation processes are approximately 23% more profitable than their competitors and previous scenarios. This is not FinTech but ordinary progress that still doesn’t take place as we expect and need, especially during a pandemic for a fast and safe recovery. The era of digital life is now.

While our industries pay little attention to technology infrastructure transformation, there are focuses that offer a deeper view of this ocean that’s still too big to handle

Displacement, euphoria, panic and profit-taking are not human behaviors, actions or feelings but abstract for a quick definition of an economic “bubble.” Just imagine how we would have responded to this pandemic decades ago. Machine learning could open a gate of hope for this. 

In the era of digital capitalism, hybrid banks develop their services in an open-logic architecture that allows them to work on the platform with other partners, offering better products for higher revenues, higher service quality and, consequentially, to harmonize the entire “engine.” 

A solution for the exploitation of our small, medium and large capitals and savings is to let the past meet the future and let them join in a fusion — not prosecuting the present factual contrast. Therefore, digital transformation means profitable growth, and this is what matters — differently than the already non-existent profits on rates and older venture instruments. 


Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?


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