Digital maturity is still a long way off for financial institutions, according to new research by Fenergo, provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions. The findings of Fenergo’s CLM Report, which is the second in a three-part series, showed that fewer than half (40%) of the 250 financial institutions surveyed are advanced in their CLM digital transformation strategy, with departmental collaboration and difficulty getting buy-in from senior management key prohibitors to change.
On a collaboration scale of 1-10, with 1 indicating working in complete siloes, and 10 meaning fully collaborative, commercial banks performed the worst across the sector with a third of firms (33%) ranking at 5 and below. However, with over 54% of banks stating the lack of single client view is a key pain point for the business, it’s clear that a greater focus on departmental collaboration is required.
The majority of banks (87%) stated the need to get buy-in from senior management across different business areas is a major barrier to improving and investing in CLM, while 88% of Chief Data Officers believe that increasing visibility and collaboration between internal teams would help to alleviate longer onboarding times for clients.
Sixty percent of financial institutions rate themselves as intermediate or beginners in the maturity of their CLM digital transformation strategy. The US is the least advanced out of all the nations, with only 13% claiming an expert level of digital maturity, while the UK is the most advanced (24%), closely followed by APAC (21%).
However, almost a third (29%) of banks have not yet integrated with a KYC utility or with an external data provider across the customer lifecycle.
“What often stands in the way of collaboration is the historical growth path of financial institutions. When banks have been built upon revenue streams that are not interdependent, it results in teams that are not required to collaborate,” says Fenergo CEO Marc Murphy. “However, collaboration across departments and business lines is a key factor in achieving digital transformation and improving customer experiences.”