Digital Transformation in Finance and Banking Sectors

This chapter discussed the effect of digital transformation in the banking and financial sector. This chapter examined the overview of banks and the financial sector and the role of COVID-19 in increasing the pace and adoption of digital transformation by banks and other financial institutions. Also, the chapter examined the important role digital transformation plays in the banking and financial sector and how digital transformation is reshaping the banks and financial sector. Emphasis was given to the key technologies driving digital transformation in the banking and financial sector and the key dimensions of banks’ digital transformation. The chapter also discussed the role of digital transformation in driving financial inclusion and accessibility. The chapter equally discussed the challenges limiting the adoption of digital transformation by banks and other financial institutions and the future trends and prospects for banks and financial institutions as they embrace digital transformation. The final lap of the chapter is the summary of the key findings from the chapter.

Like every other financial institution, banks seek to maximise their profits by reducing operational expenses or reaching out to more customers. Hence, the need to embrace the disruptive tendencies of digital transformation that are changing the organisational landscape and how businesses and individuals conduct their daily activities. The Covid-19 outbreak caused a significant shift in how banks and other financial institutions operate. More internet-based services than ever are available in the banking sector. Digital services are now more crucial than ever, even though traditional banking services still entail going to a banking hall or the offices of any financial organisation. Transactions made during and after Covid-19 surpassed those made before the outbreak. The banking and finance industry is undergoing a complicated and continuing digital transformation process. The diverse effects of digital technology on the sector have been examined in this chapter, from improving customer experiences and operational efficiencies to addressing legal issues and cybersecurity risks. Financial institutions must innovate and adapt as technology develops in order to be competitive in this quickly changing environment. Those who embrace this shift will be best positioned for success in the future. There is little doubt that the future of banking and finance lies in digital technology.