Oracle Industry Solutions—Financial Services

Digital Innovation: Seize Your Next Market Opportunity

A guide to creating strategic value for financial institutions.

A sea change is underway.

The financial services industry is changing rapidly—driven in no small part by the rise of agile, innovative fintech startups. They’re able to quickly take advantage of disruptive technologies, and deliver the exciting new user experiences that are fast becoming the norm.

At the same time, your own business needs are evolving. Traditional banks are required to report more accurately, and comply with demanding new regulations—all while maintaining transparency with shareholders.

Digital innovation: friend and foe?

With leadership that champions digital innovation and nurtures a collaborative culture, the very thing that threatens your business—digital innovation—could quickly become a major opportunity for growth, additional revenue, and market relevance.

Explore the causes behind the rapid change across financial services, examine the new strategic opportunities this change has created, and assess how those opportunities can be seized.

Marco Antonio Cavallo, Advisor,
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1. Everybody’s Changing

The changes—and their causes.

Financial services digital transformation is happening fast. Creating strategic value for your organisation depends on being able to understand—and take advantage of—this change.

But how and why is it happening at such speed? Here are four major drivers of change.

Transformation Trends

New fintechs.

To take advantage of new opportunities, financial institutions have been eager to embrace technological change. Many new fintechs have arrived on the scene, built by technically savvy digital natives. These companies don’t play by the same rules. They’re more efficient with capital, and more agile. It’s high risk, but also high reward. And because of their speed, they can fail fast and quickly move on to new innovations. For these reasons, fintechs can deliver brand-new digital products and move with more speed than large, established financial institutions.

700% Increase in VC investment in fintech since 2015—from 3 billion USD to 22 billion USD

Big tech.

Consumers and businesses alike increasingly transact significant volumes through the major tech players, like Alibaba, Amazon, Facebook, Google, and Apple. These platforms facilitate relationships between customers and financial service providers. Whether or not we ever see a Google Bank, Google Wallet, Amazon Loads, Apple Pay, and countless other technologies are disrupting traditional banking functions: payments, money management, product comparisons, and financial advice.

$50bn The value of Alibaba’s financial arm in 2016

Established financial institutions.

It’s not only the new companies that are embracing digital revolution, however. 96 percent of investment CEOs say digital transformation is central to their business, according to a 2017 Roubini ThoughtLab study. In 2016, 24 percent said digital transformation was unimportant or only slightly important—so you can see how quickly attitudes are changing. Technology is helping financial institutions become more efficient, and offer greater value to customers. New regulations are forcing innovation, transforming the industry and driving compliance.

96% Of investment CEOs say digital transformation is central to their business
—Roubini ThoughtLab


Customer needs and expectations are changing, too. As other aspects of their lives become increasingly digitised, why shouldn’t banking modernise in the same way? Customers have grown used to slick digital experiences when it comes to transport, shopping, socialising, and more. They now expect similar, consumerlike experiences across all services—from medical care to telecommunications to utilities. Financial services are no exception, and consumer service expectations are constantly changing.

68% Of millennials say desktop or mobile is their most frequent channel of interaction with banks
—Oracle research