Traditional banks are modernizing internal
and customer-facing technologies to compete with new payment,
investment and lending alternatives, ISG Provider Lens™ report
says
Banks in the Nordics are going through significant technology
and business transitions, moving from legacy systems to new
cloud-based platforms and products in response to new competition
and changes in consumer preferences, according to a new research
report published today by Information Services Group (ISG) (Nasdaq:
III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the Nordics finds that digitalization is a top priority for banks
in the region, with some focusing on improving their current
products and services while others also seeking growth through new
offerings and adjacent businesses. As in other regions, the current
shake-up in Nordic banking was caused in part by changes in
consumer behavior during the COVID-19 pandemic and in part by
FinTech startups introducing new kinds of products.
“Technology innovation is empowering banking customers and
opening doors to new competition, business models and revenue
opportunities for traditional banks,” said Owen Wheatley, lead
partner, banking and financial services at ISG. “This trend is as
strong in the Nordics as in any market, and in some respects even
stronger.”
Consumers have become used to modern digital applications that
offer quick, efficient and seamless user experiences and now expect
the same in banking, the report says. This has led banks to both
accelerate the digitalization of outward-facing elements, such as
products and services, and simplify underlying processes. These
efforts include adoption of new technologies, such as AI,
blockchain, natural-language processing (NLP), intelligent
automation and analytics, and the introduction of open banking
frameworks that allow innovation through APIs.
Traditional banks in the Nordics, which are more profitable than
most of their European counterparts, now face competition from new,
digital rivals offering alternatives in areas including consumer
loans, mortgages, credit cards and brokerage investments, ISG says.
Payment ecosystems are also being disrupted, and major Nordic banks
are working together to modernize in this area by developing P27, a
system for efficient, real-time domestic and cross-border payments
in the Nordics.
“Banks in the Nordics need to attract new users to their payment
platforms and credit cards if they want to compete with FinTech
startups,” said Jan Erik Aase, partner and global leader, ISG
Provider Lens Research. “Leading service providers are investing in
innovations to make this possible.”
The report also examines a wide range of other trends in the
Nordic banking industry, including regulatory changes in Denmark,
Norway and Sweden addressing areas such as sustainability,
transparency and consumer choice.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the Nordics evaluates the capabilities of 22 providers across four
quadrants: Core Modernization and Integration Services, Technology
Transformational Services for Digital Banking, Banking Governance,
Risk and Compliance Services, and Payment and Card Processing
Services.
The report names Accenture, Capgemini, Cognizant, HCLTech,
Infosys, TCS and Tietoevry as Leaders in all four quadrants. It
names Deloitte and LTI as Leaders in two quadrants each.
In addition, Atos and LTI are named as Rising Stars — companies
with a “promising portfolio” and “high future potential” by ISG’s
definition — in two quadrants each.
A customized version of the report is available from
Capgemini.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the Nordics is available to subscribers or for one-time purchase on
this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Canada, Brazil,
the U.K., France, Benelux, Germany, Switzerland, the Nordics,
Australia and Singapore/Malaysia, with additional markets to be
added in the future. For more information about ISG Provider Lens
research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype
reports, offer a first-of-its-kind evaluation of providers from the
perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 800 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,300
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221201005456/en/
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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