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The impact of digitization on the banking industry


Reinvention for banking includes five main stages of a digital banking framework.

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In the banking industry, technologies are tearing down barriers to entry and opening doors for new financial service providers.

In a recent survey of global banking executives by the IBM Institute of Business Value (IBV), almost 60 percent of respondents said that the boundaries between industries are blurring and more than 60 percent see competition coming from new and unexpected places.¹ Competition from startups, internet giants, and industries outside of banking, along with increased regulations, are forcing banks to accelerate their Digital Reinvention.

Many bankers recognize this inevitability. But what does building a truly digital bank entail?

IBM Digital Reinvention® is a framework that encapsulates the dramatic changes required, involving fundamental re-conception of strategy, operations, and technology from the ground up.²

Rethinking customer experiences and developing efficient, effective operating models that facilitate an open ecosystem of participants are enabled by the underlying processes, technologies, and organizational structures. In turn, customers benefit from fair prices, increased transparency, immediacy, and high-quality relevant interactions.

This report covers the impact of digitization on the banking industry. It outlines the five main stages of a digital banking framework approach. The report also explores a detailed reference model that outlines the digital capabilities banks need to compete in the digital space. And it provides six recommendations to consider as you move forward.

¹ Diamond, Sarah, Anthony Lipp, Nick Drury, and Anthony Marshall. “Realizing tomorrow today: Digital Reinvention in banking.” IBM Institute for Business Value. October 2017. https://www.ibm.com/services/us/gbs/thoughtleadership/drbanking

² Berman, Saul J., Peter J. Korsten, and Anthony Marshall. “Digital reinvention in action.” IBM Institute for Business Value. May 2016. https://www.ibm.com/services/us/gbs/thoughtleadership/draction/


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Meet the authors

Javier Vidal Plana

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, Banking Enterprise Architect, IBM Global Markets


Jesus Freire Costas

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, Banking and FM Industry Technical Leader, Europe - Distinguished Engineer, IBM Global Markets


Montserrat Roca Juncosa

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, IBM Banking Center of Excellence Manager, IBM Global Markets



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