Digital Transformation is a complex endeavor which can contain several strategic imperatives—each having several levers that can spawn multiple projects. For example, many banks seek to be more client centric and less product centric. Others seek efficiency improvements or the ability to accelerate innovation. A third ambition is to develop new business models to create future value. These and other strategies require a mix of interdependent capabilities. The collective pursuit and continual improvement of these capabilities is the essence of digital transformation.

For many institutions, the speed of market change is viewed as a threat, and there is a growing divide between the “haves” (Tier 1 megabanks) and the “have-nots” (smaller institutions with limited resources for development). The emergence of financial technology (fintech) adds more competitive pressure, moving the ball forward on “what good looks like” and influencing consumer demand.

With this context, Celent interviewed five financial executives from select banks about their own digital journeys, challenges, and road maps. We focused the analysis on five technology characteristics understood to be prerequisites to digital transformation and embedded within a larger digital maturity framework: technology modernization, data and analytics, technology innovation, agile organization, and ecosystem configuration.