I always find it reassuring when a large and respected organization validates the core beliefs and central value proposition of our industry. A new report by Capgemini shows that new applications of IT could add $512 billion in global revenue to the financial services sector by 2020.
That's excellent news and the timing is perfect because it means there's still plenty of runway ahead for smart CIOs and visionary technology executives.
Specifically, the Capgemini report cites robotic process automation, artificial intelligence and business process optimization as key technologies for driving unprecedented growth over the next four years. Those newer technologies are being used to boost revenues, create value and open new markets for unparalleled growth.
"Leaders within the financial services industry have begun taking automation directly to their customers, using it as a revenue generator rather than just a cost saver," according to Capgemini.
From my perspective, each sector of the economy has valuable lessons and experiences to share. As leaders, we're always looking for the next "new wave," and it certainly looks like the financial services industry has latched onto something important.
The report found that, "on average, over one-third (35%) of financial services firms have seen a 2-5% increase in topline growth from automation, with faster time-to-market and improved cross-selling efforts as the key factors that influence gains. Meanwhile, 64% of organisations from across different segments have seen improvement in customer satisfaction by more than 60% through intelligent automation."
The Capgemini report supports what I've been saying and writing for years: Visionary companies perceive IT as a value generator and business growth accelerator. They press hard for digital transformation and move ahead of the pack to deploy technologies that make a difference. They aren't afraid to take risks and push the envelope when they sense a competitive advantage.
I find it especially interesting that financial service firms are focusing their energy on pushing new technology directly to the consumer. "The report finds that more than half of firms (55%) are focused on increasing customer satisfaction through automation, while close to half (45%) see growing revenue as a key objective," according a blog post by Priyanka Roy.
The report definitely aligns closely with my central message of lead, reimagine and reinvent the modern enterprise to drive growth and create value. The trends cited in the report offer amazing opportunities for courageous CIOs and technology leaders. Will you be ready to seize those opportunities when they arise?
Here's a link to download the full report. It's worth reading.