Digital transformation of the Russian financial sector already has a solid base. And with more and more Russians taking advantage of remote service channels and becoming connected to regular internet access, there is tremendous growth potential for digitalization in Russia. In order for this to come to fruition, there are three main areas in which Russian financial sector players should continue innovating:
- Products – the drivers of product innovations in the financial services industry are data analytics, machine learning, artificial intelligence, robo-advising and blockchain. Based on the implementation of new technologies that fully-utilize these advances, fundamentally new products, services and other opportunities can be explored and created to provide real value to consumers.
- Processes – the main benefits of digital transformation for traditional players are cost reduction and faster operations. Even though this can be a somewhat risky and costly investment, even small players can find benefits from such innovations if they approach implementation in a smart way that is focused on core competencies.
- Business models – creating an ecosystem, developing fruitful partnerships with other companies and creating fundamentally new lines of business all represent great opportunities for Russian financial institutions. To do this, they need to explore cooperation with technology companies as well as other forms of cooperation, especially with aggregators of user data (e.g. social media, telecom networks).