The Digital Journey of Banking and Insurance, Volume I: Disruption and DNA

This book, one of three volumes, showcases the effective transformation of companies providing banking and insurance services. This first volume gives a business-oriented introduction to the setting and the current challenges of fintech, regtech, and insurtech and provides an outlook on what will be needed in the future. Specific sub-departments in financial services are examined with a view to accounting, risk, and regulatory segments. The book also addresses the importance of cultural aspects of the coming digital transformation with an eye to requirements that will enable a digital bank or insurance company to thrive in 2025. The angle shifts over the volumes from a business-driven approach in “Disruption and DNA” to a strong technical focus in “Data Storage, Processing and Analysis”, leaving “Digitalization and Machine Learning Applications” with the business and technical aspects in-between.

• Language: English
• Publisher: Palgrave Macmillan
• Release date: Oct 30, 2021
• ISBN: 9783030788148

Book preview

Part IMarket View

The part Market View mirrors the trends and activities observed in banks and insurance companies. The companies in the financial service sector face numerous challenges on the revenue and cost side of the business model. The causes are partially macroeconomic (lower interest rate, impairments driven by the COVID-19 pandemic), but primarily sector-specific challenges triggered by competitors (fintech and Big Tech).

Given the challenges, this part offers a view of the capabilities and tools needed to overcome them. The chapters in this part offer structures to analyze and group the upcoming requirements for digitalization. An open discussion regarding the strategies to drive a successful digital transformation is carried out.

Even extreme approaches like the greenfield approach (start a new company with a differentiating culture and a state-of-the-art infrastructure and architecture) are explored.

The first chapter of this part (Merkt, Thiele and Dinges 2021) discusses the projected needs and capabilities of banks in a five-year horizon. The authors start with an Enterprise-Architecture-based approach and give an overview of the business capabilities for a digitally capable bank. A structure to group the diverse topics of digitalization is also offered in this