Pandemic effects and an ongoing wave of
industry innovation are forcing institutions to use new digital
platforms to compete, ISG Provider Lens™ report says
U.S. banks are modernizing their technology and business models
at an accelerating pace in response to competitive pressures,
higher customer expectations and ongoing changes in regulation,
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 U.S. finds that banks face new competitors, an increasing focus
on the climate impact of investments and a growing demand for new
types of retail and business banking experiences. These changes and
others are driving banks to implement more flexible next-generation
technology platforms and business processes, often in partnership
with service providers.
“The U.S. banking industry is aggressively carrying out
transformation initiatives in digital banking,” said Owen Wheatley,
ISG’s lead partner for banking and financial services. “Banks are
seizing opportunities for innovation by seeking out different types
of service, technology and platform providers, as well as
reimagining relationships with existing partners as part of a push
toward next-generation ecosystems.”
The strong U.S. trend toward online and mobile banking
accelerated during the pandemic, and new kinds of payment and
banking platforms are still hitting the market, ISG says.
Traditional banks are implementing cloud-based platforms to compete
with products from well-known players, such as Apple Pay, and new
types of lending, investment and credit card offerings from FinTech
startups.
Next-generation banking platforms have entered the production
phase at many traditional banks, allowing them to achieve
significant automation and operate at a fraction of previous costs,
the report says. Banks are modernizing so they can add capabilities
such as banking-as-a-service offerings and the use of open banking
APIs for integration of FinTech solutions from external
partners.
Tightening U.S. regulations also are driving banks’ investments
in new technologies. ISG expects regulators to require more
comprehensive capital and liquidity planning to prepare for future
disruptions like the pandemic, and cybersecurity compliance rules
add to the requirement for resiliency. Banks are also modernizing
systems for monitoring and reporting the greenhouse gas emissions
associated with projects they fund.
“Changes across the U.S. banking industry are far-reaching and
likely to continue,” said Jan Erik Aase, partner and global leader,
ISG Provider Lens Research. “To stay relevant and competitive,
banks need to innovate like technology companies.”
For more insights into the challenges facing U.S. banks and
ISG’s advice on where to find modernization opportunities, see the
ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the U.S. evaluates the capabilities of 26 providers across four
quadrants: Core Modernization and Integration Services; Technology
Transformation Services for Digital Banking; Governance, Risk and
Compliance Services; and Payments and Card Processing Services.
The report names Accenture, Capgemini, Cognizant, Infosys and
TCS as Leaders in all four quadrants. It names HCLTech as a Leader
in three quadrants. Atos, Deloitte, FIS and Wipro are named as
Leaders in two quadrants each, and EY, Fiserv, LTI and PwC are
named as Leaders in one quadrant each.
In addition, LTI is named as a Rising Star — a company with a
“promising portfolio” and “high future potential” by ISG’s
definition — in three quadrants. FIS is named as a Rising Star in
one quadrant.
A customized version of the report is available from
Capgemini.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the U.S. 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/20221130005307/en/
Press Contacts:
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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