The future of Banking: Embracing Digital Transformation

by Karla Marie Magpayo

edited by Giulia Stivanello

August 2, 2025

Why is technological transformation critical for banks today?

Well, it’s pretty much the same for all other businesses, ultimately, customers’ needs are evolving, and we just need to adapt. For banks, the drivers for transformation can vary: maybe they want to grow, expand their customer base, reduce costs, or avoid future costs, especially the ones linked to legacy infrastructure. Those old systems generally cost more to maintain.Another big reason is risk. With old technology comes higher risk.Think of banks like old smartphones. They need regular updates to keep up with new apps. They also need to meet user expectations, fix security issues, and work faster and better.

How do you manage large-scale tech change in such a highly regulated and traditional environment like banking?

For me, it’s really about being clear with your why. It’s being clear with your goals and establishing a clear path toward those goals. Yes, banks are highly regulated, and for good reason. But as long as you can demonstrate to regulators that you have strong control over your programs and that you govern them properly, that shouldn’t be a problem.There’s always this balance: being agile while also ensuring you’re in control. That means safety measures need to be in place.That’s why regulators often require named individuals in the bank, usually at the C-suite level, to attest to the risks and confirm that they’re being managed appropriately. It’s all about avoiding negative impacts and, ultimately, protecting customers.And of course, we also have a duty to our stakeholders, to make sure we’re delivering value for the investment being entrusted to us through these programs.

How does my typical day look like as a technology transformation manager?

I like starting early. I’m a morning person, and I like being organized.I typically organize my tasks based on urgency and importance, and I time-block throughout the day.In general, I divide my time between two big areas: building and assuring.Building means working on capabilities for the program, developing tools, frameworks, or support systems.Assuring means making sure everything ties together: risks, issues, dependencies, progress tracking. It’s about making sure things are aligned and escalated when necessary.I guess you could compare it to being an orchestra conductor.We coordinate different musicians, our teams, making sure everyone plays in harmony. That’s the coordination part. Then we listen to the music, that’s monitoring progress. And if something sounds off, we fine-tune.We also plan future performances, so that’s strategy.And sometimes we teach new pieces, that’s implementing change.

How does a transformation project usually start? What triggers the need for change?

Think of it like deciding to renovate your room.Usually, you do that because something isn’t working. Maybe the door squeaks.Or maybe there’s a specific need, like you need a study desk.Sometimes it’s because your furniture is outdated. Or your friends have cooler rooms, and you feel the competition.But of course, you need your parents’ approval, and you have to play by their rules. That’s the equivalent of regulation in banking.So when we start transformation projects, we begin with a business case.Convincing your parents to let you renovate is like explaining the benefits: what are the goals?Maybe you’d study more with a new desk. In banking, it could be reduced risk, cost avoidance, or better service.Once the goals are clear, we align them with cost projections, often spread over multiple years for large-scale programs.If the case is approved, then comes governance: tracking, measuring, adjusting when needed.That’s one of the most important things, there’s no point doing a transformation if you don’t know where you’re heading.And you have to adjust as you go, because there will always be unknowns.

Can you share an example of a tech transformation initiative you’ve worked on, and what changed as a result?

Sure, previously I managed a project management office for teams moving to the cloud.I worked on the business case, modeled the cost impact, and supported the rollout of capabilities.We made sure we had governance and control in place.We adapted as needed.Eventually, we let go of old systems and improved the service to our customers, plus we achieved cost savings.Sometimes transformation also means improving systems and introducing efficiency in how people work.It’s about changing how the business operates to deliver value.Ultimately, it means changing the overall customer experience.

What trends do you see in the next 5–10 years that students need to keep an eye on?

There’s going to be a boom in AI.Bank apps will learn your spending habits and might warn you before you go into overdraft. It’ll be like having a personal financial advisor in your pocket.This will become more pervasive, banking apps will get smarter and more integrated with other apps, like shopping or email.You’ll be able to share financial information more securely, too.Security will become more sophisticated. We’ll see more facial recognition, behavioral security, systems that understand your banking patterns and flag unusual behavior.There will also be more personalization. With AI and all the available data, it’s easy to tailor services to each person.Then there’s invisible banking, where banking blends into your everyday life.Think of Amazon Go: you just walk out of the shop, and the payment happens.Banks are also becoming more environmentally conscious. They’ll track your carbon footprint based on purchases, offer rewards for sustainable choices, and invest in green companies. Most are trying to go paperless.

What kind of roles or entry points are available for students who want to get into technology transformation?

There are multiple doors.You can start as a trainee, banks usually run programs where students work alongside teams. It’s a great way to gain experience and bring in fresh perspectives.You can also join as a project assistant or associate, that’s typically the entry-level route.Another area that’s growing fast is data.If you start in data, you can easily move into transformation later, if that’s where your interest lies.

What technical skills should students start building now to prepare for roles like mine? Are there any specific tools or platforms which would make them stand out?

Think of it as building a toolkit.The trend is cloud and AI, so start learning about them.There are lots of free courses on Coursera, Google Academy, LinkedIn Learning.Also, understand project planning. That’s useful in any industry, not just banking.If you’re more technical, try learning a new programming language.And definitely look into data analysis. Be a detective with numbers.If you’re good with numbers, that’s a strong area to explore.

What about soft skills?

Hugely important.You can practice while you’re still at university.Try coordinating a group project, or join a club where you bring people together.Never underestimate the power of uniting people to drive toward a shared goal.It’s a skill that banks, and all companies, value highly.

Any extra tips for students trying to break in?

Start small. Try managing a school project using free project management tools like Asana or Trello.Practice explaining tech to non-tech people, like explaining TikTok to your grandparents.Join a tech club or society at university. Tech companies love seeing that kind of engagement on your CV, it shows real interest. You could even create a study group focused on tech and change, and invite speakers in the field to share their experience.

How do you personally stay ahead in such a fast-evolving field?

It’s similar to what I said before: keep learning.Read tech and banking news. Stay on top of trends.Get certifications, I’ve done two cloud certifications myself.Network with others. The more you share, the more you learn.If you’ve had an internship, share your experience, it reinforces your own learning.And always stay curious.