The numbers tell the story. 70% of digital transformations fail. In banking specifically, only 30% of organisations successfully implement their digital strategy. The technology isn't usually the problem. It's never the technology.
It's Not About the Tools
I've seen banks spend millions on new platforms, systems and infrastructure. Beautiful architecture. State-of-the-art capabilities. And then it all sits there, largely unused. Why? Because the people who are supposed to use it don't want to. I learned this at Shermin (before we became known Stax). We tried to introduce a document collection service instead of manually requesting onboarding docs via email from retailers. Seemed logical. Better process, fewer emails, cleaner workflow. Retailers hated it. They wanted to send docs via email. So they did, and we were back where we started. That was six years ago. We still haven't fully solved it. This is the dirty secret of digital transformation. It's not about building better technology. It's about adoption. If people don't adopt it, it fails.
What Gets Adopted Actually Works
At Shermin, we got some things right early on. We introduced an automated training platform that drove up BDM capacity significantly. Business Development Managers adopted it because it made their jobs easier and helped them spend more time prospecting. It was designed with them in mind, not imposed on them from above. We built a CRM that integrated FCA, Companies House and Creditsafe data to speed up onboarding. Real pain point was solved. Retailers could see they were getting answers from lender onboarding requests faster. Adoption was never the issue. We created Trade Quote, a quoting tool that let retailers send finance quotes directly to customers. That solved a customer pain point. Of course they used it. The pattern is clear. The projects that succeeded weren't the ones with the fanciest technology. They were the ones that solved real problems for the people using them.
Adoption Is Everything
I've now built Stax. £700m processed. 220,000 loan applications. 600+ retailers. Three years from a standing start. That's built on the same principle. Every feature, every workflow, every integration is designed around one question: will the people using this actually want to use it? If the answer is no, we don't build it. We either build something different or we don't build it at all. This mindset changes everything. It shifts the focus away from "what can technology do" and towards "what do people actually need?"
The Six Things That Flip the Odds
Research identifies a clear pattern in transformations that succeed. The organisations that flip the odds from 30% to 80% do six things consistently: Clear Strategy and Commitment. Not just "we want to go digital." A specific, documented strategy with real commitment from leadership. Effective Leadership. Two out of three winning digital transformations had agile, engaged leadership that could adapt and move quickly. The failing ones had leaders stuck in old thinking. Agile Governance. Decisions need to happen fast. Roadblocks need to be removed. You can't have bureaucracy slowing you down when you're trying to change. Quality Talent. The best people on your transformation, not the ones with spare capacity. This matters more than most organisations admit. Effective Monitoring. Clear metrics, clear targets. You need to know if it's working, and you need to know early enough to course-correct. Business-Led Technology. The technology serves the business, not the other way round. Most organisations get this wrong. But even if you get all of those right, you still fail if you skip the most important part: adoption.
Why People Resist
Transformation projects fail because organisations focus on the 10% that's about technology and ignore the 90% that's about people. People resist change when:
- They don't understand why it's happening
- They haven't been asked what they actually need
- The new system makes their job harder, not easier
- They're told to change instead of being brought along on the journey
The ADKAR model has it right: Awareness, Desire, Knowledge, Ability, Reinforcement. You need all five. Most organisations skip straight to knowledge and ability. They train people on the new system and expect them to use it. Build awareness. Explain why the change is happening. Create desire by showing what's in it for them. Then train them. Give them the ability to use it. And crucially, reinforce the new behaviour. Don't assume people will stick with it once the training stops.
What I Learned From Getting It Wrong
When we built Trade Quote at Shermin, we worked closely with retailers right from the start. We showed them prototypes. Asked what would make it useful. Listened when they said something wasn't working. By the time we launched it, they wanted to use it. When we built the CRM, we tackled the actual pain points that were slowing down onboarding. Retailers could see the speed improvement within days. They brought it into their workflow because it objectively worked better. The document collection service failed because we didn't talk to retailers about how they actually worked. We assumed they'd prefer a more efficient system. We didn't ask. Ask. Involve users early. Test with real people. Watch what happens when they actually try to use it. Then adjust.
The Hard Truth
Most digital transformation projects in banking fail because organisations build solutions looking for problems instead of solving actual problems. They implement technology that sounds good in the boardroom but makes people's working lives harder. It's predictable. And it's completely avoidable. The organisations that succeed treat transformation as a change management problem first and a technology problem second. They obsess about adoption. They involve the people who'll be using the systems in the design. They measure success by usage and impact, not by what was spent or what was built.
The Only Question That Matters
After 20 years and multiple transformations across different organisations, I'm certain of one thing. Will people actually use this? That's it. That's the whole game. Every other question is secondary. If you're planning a digital transformation, ask that question about every feature, every workflow, every system. Ask it early. Ask it often. Ask it honestly. Because the graveyard of failed transformations is full of beautiful technology that nobody wanted to use. Don't add to it.
Sources
- Why most digital banking transformations fail - and how to flip the odds – McKinsey & Company
- Digital Transformation Failure Rate 2025 - Why 70% of Projects Still Fail – Melting Spot
- Overcoming Banking Digital Transformation Challenges – Prosci
- Companies Can Flip the Odds of Success in Digital Transformations from 30% to 80% – BCG
- Digital Transformation in Financial Services – BCG
- Data Transformation Challenge Statistics – Integrate.io