Modern, cloud-based and as-a-service
technologies help traditional institutions provide fast, online
banking experiences, ISG Provider Lens™ report says
Many traditional banks around the world are meeting changing
customer expectations and competing with new rivals by adopting
digital banking platforms, 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 Technology Platforms
global report finds consumers increasingly demanding quick, online
banking experiences rather than traditional transactions inside
bank branches. Cloud-native neobanks were launched to deliver those
experiences, while older institutions are catching up by replacing
multiple legacy systems with new platforms and services, typically
taking a phased approach.
“Traditional banks are taking action to attract new business,”
said Owen Wheatley, lead partner, banking and financial services at
ISG. “Digital banking platforms can help them engage with customers
and update their services, but modernization requires time and a
sound strategy.”
Many digital banking platforms are cloud-based, and more than 70
percent of banks are currently moving to the cloud, the report
says. Benefits of cloud migration include lower costs, greater
agility and faster time to market for new banking products.
However, given the high stakes of handling customers’ assets, most
banks are migrating the systems that support new accounts and
products while keeping their existing business on legacy
infrastructure for now.
Some banks are beginning to offset revenue lost to new
competitors by working with them, ISG says. By letting financial
technology startups connect to their systems via open APIs, banks
are taking advantage of modular Banking-as-a-Service (BaaS). While
startups help them offer faster deployment and more advanced data
analytics for customer support, the banks bring regulatory,
compliance and domain expertise.
“Partnerships with cloud-based platform providers are helping
banks, especially smaller ones, compete cost-effectively,” said Jan
Erik Aase, partner and global leader, ISG Provider Lens Research.
“Both core banking and payment processing are available as
services, which cuts the time and expense of offering new
products.”
New technologies are also transforming wealth management
services, the report says. Capabilities including AI, machine
learning, robotic process automation and trusted digital
identification systems are now mandatory, especially for data
analytics to support hyper-personalized services.
The report covers many other digital banking trends, including
automation of manual tasks to cut costs, the rise of central bank
digital currencies and how banks are participating in the growth of
buy now, pay later (BNPL) services.
The 2022 ISG Provider Lens™ Digital Banking Technology Platforms
global report evaluates the capabilities of 36 providers across
three quadrants: Core Banking Platforms (with DBEH), Digital
Payment Processing Platforms and Digital Wealth Management
Platforms.
The report names Fiserv as a Leader in all three quadrants. It
names Finastra, FIS, TCS and Temenos as Leaders in two quadrants
each. ACI Worldwide, Adyen, Avaloq, Intellect Design, Infosys
Finacle, Marqeta, NIUM, Oracle and Prometeia are named as Leaders
in one quadrant each.
In addition, InvestCloud, Mambu and Volante Technologies are
named as Rising Stars — companies with a “promising portfolio” and
“high future potential” by ISG’s definition — in one quadrant
each.
The 2022 ISG Provider Lens™ Digital Banking Technology Platforms
report for global 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/20220809005763/en/
Press:
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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