Understanding the Fundamentals of Digital Transformation in Financial Services: Drivers and Strategic Insights
Year: 2023
Type: article
Abstract: The current financial services sector is realising considerable changes in its operations due to development in technology and embracing of digital platforms. This evolution is changing the established concepts of business, consumers and channels of delivery of services. Financial services firms are changing the way they work through digital transformation due to developments in technology, changes in customer needs, and an increase in emphasis on sustainability. Understanding the opportunities, risks, and new trends in digital transformation is the focus of this paper. Opportunities include efficient real-time decision-making processes, increased transparency and better process controls, which are balanced by the threats of change management, dubious organization-technology fit, and high implementation costs. The study also examines recent advancements, including the application of machine learning and artificial intelligence, developments in mobile and online banking, integration of blockchain, and increasing focus on security and personalised banking. A literature review yields some findings from different studies on rural financial services, the evolution of the blockchain, drivers of digital transformation, cloud-based learning approaches, and emerging sustainability practices. All of these results suggest that more strategic planning, analytics, and more focus on ensuring that organisational objectives are met with transformations should be pursued. Hence, this research findings add to the existing literature in determining how innovative and digital technologies are likely to transform the financial services sector and advance sustainability.
Authors: Gangadhar Sadaram, Manikanth Sakuru, Krishna Ja, Varun Bodepudi, Niharika Katnapally, Srinivasa Rao Maka, Laxmana Murthy Karaka
Language: English
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405675764