Banks gain competitive advantage through digital platforms

STAMFORD, Conn.–(BUSINESS WIRE)–Based on a new research report released 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 reveals that consumers are increasingly demanding fast online banking experiences rather than traditional bank branch transactions. Cloud-native neobanks have been launched to deliver these 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 steps to attract new business,” said Owen Wheatley, senior partner, banking and financial services at ISG. “Digital banking platforms can help them engage with customers and update their services, but modernization takes time and a solid strategy.”

Many digital banking platforms are cloud-based, and more than 70% of banks are currently migrating to the cloud, the report says. The benefits of migrating to the cloud include lower costs, greater agility, and faster time to market for new banking products. However, given the high stakes associated with managing customer assets, most banks are migrating systems that support new accounts and products while maintaining their existing operations on the existing infrastructure for the time being.

Some banks are beginning to make up for lost revenue to new competitors by working with them, ISG says. By allowing fintech startups to connect to their systems through open APIs, banks are leveraging modular Banking-as-a-Service (BaaS). While startups help them offer faster deployment and more advanced data analytics for customer support, banks bring regulatory, compliance, and domain expertise.

“Partnerships with cloud-based platform providers help banks, especially smaller ones, compete profitably,” said Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research. “Basic banking and payment processing are available as services, reducing the time and expense of offering new products.”

New technologies are also transforming wealth management services, the report says. Capabilities such as AI, machine learning, robotic process automation and trusted digital ID systems are now mandatory, especially for data analytics to support hyper-personalized services .

The report covers many other digital banking trends, including the automation of manual tasks to reduce costs, the rise of central bank digital currencies, and how banks are participating in the growth of buy now, pay later services ( BNPL).

The 2022 ISG Provider Lens™ Digital Banking Technology Platforms Global Report assesses the capabilities of 36 providers in three quadrants: central banking platforms (with DBEH), digital payment processing platforms, and digital wealth management platforms.

The report names Fiserv as a leader in all three quadrants. He 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 leaders in one quadrant each.

Additionally, InvestCloud, Mambu, and Volante Technologies are designated as rising stars – companies with a “promising portfolio” and “high future potential” as defined by ISG – in one quadrant each.

The 2022 ISG Provider Lens™ Digital Banking Technology Platforms for the World report is available for 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 assessment of its kind to combine data-driven empirical research and market analysis with the real-world experience and insights of the global advisory team. from ISG. Companies will find a wealth of detailed data and market analysis to help them select appropriate sourcing partners, while ISG advisors will use the reports to validate their own market knowledge and make recommendations to client companies. from ISG. The search currently covers providers offering their services worldwide, across Europe, as well as in the US, Canada, Brazil, UK, France, Benelux, Germany, Switzerland , Nordics, Australia and Singapore/Malaysia, with additional markets to be added. in the future. For more information on the ISG Provider Lens research, please visit this webpage.

A complementary research series, the ISG Provider Lens Archetype Reports, offers an initial assessment of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a global leader in technology research and consulting. A trusted business partner to more than 800 customers, including more than 75 of the world’s 100 largest enterprises, ISG is committed to helping enterprises, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The company specializes in digital transformation services, including automation, cloud, and data analytics; procurement advice; governance and risk management managed services; network operator services; design of strategy and operations; change management; market intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Connecticut, 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 expertise in industry and technology and its world-class expertise. research and analysis capabilities based on the most comprehensive market data in the industry. For more information, visit www.isg-one.com.