A strong CIO and CFO tandem can drive digital transformation in banking

Digital transformation is undoubtedly one of the top strategic topics for banks in the Middle East. Johnathan Bangura from Rimini Street outlines why modern demands are requiring the CIO and CFO to join forces to steer their banks toward technology platforms that are cutting-edge, agile, and flexible.
The Middle East’s financial services sector is in the middle of a period of significant expansion. Along with Africa, the industry’s compound annual growth rate (CAGR) went up 10% in the period 2020-23, ahead of Europe, Asia-Pacific and North America, and was outperformed only by Latin America.
It is an environment filled with opportunity, but only if banks and other financial institutions are set up to capitalize – signaling a need to invest in digital transformation, and quickly.
Investing in innovation
Financial institutions in the Middle East are rapidly adopting new technologies to introduce innovative services and operational models. From advanced analytics and artificial intelligence to blockchain and digital banking solutions, these technological advancements help Middle Eastern financial institutions remain competitive on a global scale.
This shift not only meets the evolving demands of customers but also supports national development by fostering a more efficient and inclusive financial ecosystem.
The recent report ‘C-suite Imperatives: Evolving IT and Enterprise Investment’ by Rimini Street, which surveyed nearly 1,500 CIOs and CFOs across Europe and the Middle East, found that 71% of financial service CFOs in Europe and the Middle East said they are increasing their corporate IT budgets, with corporate/business model improvements, improved customer experience and technology improvements among their 2024 goals.
These results suggest that regional CFOs and CIOs are increasingly focused on transforming how customers interact online with their products and services, aiming to deliver a more seamless and engaging experience.
And rightfully so – half the region’s population is under the age of 30, and newer entrants, who have the advantage of starting with the latest technologies, are capturing the attention and spending of the emerging generation.
Emphasizing this, research suggests that Middle Eastern customers are open to banking with new, lesser-known financial institutions if their digital offerings meet their needs and expectations. For example, in Saudia Arabia, 88% of consumers are willing to open an account with a digital-only bank. These numbers punctuate the fact that investing in innovation is no longer a question but a must for survival.
Achieving digital transformation without losing ground
Even the most well-resourced banks have finite budgets and time. Selecting which projects to invest in within a timeframe that allows them to be as or more digitally savvy as their competitors is a strategy C-suites must adopt.
Established financial institutions have complex, sprawling IT estates, many of which contain high-value data critical to AI, analytics and more. With an enterprise-wide approach, harnessing the power of data accumulated over time, as well as adding new features and functionalities that can drive impactful improvements, requires orchestration between existing systems and new technologies.
Such a composable strategy would help organizations maximize the potential of their IT investments, achieve digital transformation without delay and save significant costs that would have been spent on upgrades or reimplementation activities, further extending the goal post for their innovation timeline.
Strong partnership between CIO and CFO
In the report, only 18% of CFOs in EMEA reported satisfaction with the impact technology investments make on their business. A stronger collaboration between IT and finance departments can help define and deliver a more successful, business-driven digital transformation initiative that is both adequately funded and more likely to succeed.
CFOs believe that ERP upgrades or migrations (23%) and mobility technologies (23%) deliver the most value to their organizations. For financial institutions, additional benefits can be gained by partnering with experts in composable ERP strategies, optimizing mission-critical systems through third-party support and reallocating savings to fund innovation.
Taking a step back as an executive team to reimagine how banking can delight both existing and new customers can also help financial institutions lead and evolve their digital transformation roadmap.
About the author: Johnathan Bangura is Vice President and Head of Financial Services at Rimini Street, a provider of enterprise software and services.