The Asia-Pacific region has seen a high rate of failure in digital transformation projects undertaken by mid- to large-sized banks, according to a report from Backbase, a fintech firm specialising in engagement banking. The report states that around 70% of such projects have failed due to costly and lengthy in-house efforts. The findings are based on insights from 125 banks and 316 chief information officers in the region. While 65% of banks have chosen to build their platforms in-house, 80% of these platforms, which have budgets of over $10m, have underperformed. The report highlights the complexities involved in managing and integrating legacy and modern systems as key reasons for in-house implementation failure. Among the challenges banks face are accessing multiple services, a lack of coherent portfolio views, lengthy onboarding processes and a lack of personalised experiences. The report suggests that a pragmatic solution for banks is to adopt a hybrid “Adopt and Build” approach, which can achieve faster time-to-market and be more cost-effective than building from scratch. Despite the difficulties, over 150 banks have already adopted Backbase’s Engagement Banking Platform to prioritise innovative digital customer engagement and experiences.
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