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Journal of Artificial Intelligence and Big Data
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  5. Volume 3, Number 1, 2023
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  7. Table 1

Understanding the Fundamentals of Digital Transformation in Financial Services: Drivers and Strategic Insights

Table 1.

Benefits and Challenges of Digital Transformation inFinancial Services
S no. Benefits Challenges
  The upshot of digital transformation is accurate outcomes reporting. Audit becomes unnecessary as a result. Since digital technologies are used for all transactions, transparency guarantees efficient reporting. Matching business goals with digital transformation strategies: Given that digital transformation requires significant financial commitments from organisations, objective alignment with investment is crucial.
  Decision makers may use the most recent and pertinent information thanks to real-time information exchange. Using efficient analytical tools for analysis facilitates decision-making and demonstrates the value of the choices taken. The extent to which technology is used to carry out corporate operations has to be clearly defined. Technology would become useless if it were used for purposes other than business.
  Since essential financial activities include the use of several digital technologies, including real-time data exchange, data analytics, data mining, etc., rigorous controls are integrated into these processes. As a result, there is no chance of overlooking any important information. Understanding how to utilise a technology is not enough to fully benefit from it.
  providing data and information to spread cost consciousness throughout the company. Employees can easily access data and information thanks to digital technology, which results in more effective judgements. Certain technologies require a substantial structural change inside an organisation. Some of an organisation's units would become more costly as a result.
  raise the degree and calibre of insight provided to the company since technologies offer vast amounts of data and information for planning and decision-making processes. The biggest obstacle a financial organisation would encounter from both personnel and investors would be resistance to change. In order to transform this resistance into acceptance, service providers will need to effectively inspire and educate their clients.