Skip to main content

Exploring Next Generation Digital Banking Platforms

The banking industry is being disrupted by new agile, digital-savvy competition. Traditional banks must now increase their efficiency and reduce costs, all while preparing to delivering next-generation digital services, according to the latest worldwide market study by Gartner.

Gartner predicts that by the end of 2019, about 25 percent of retail banks will use innovative startup providers to replace legacy online and mobile banking systems. These digital transformation vendors are emerging to make banking easier to accomplish on the various devices that today's customers want to use.

"Startups and emerging providers of digital banking platforms offer banks interesting opportunities for innovation," said Stessa Cohen, research director at Gartner. "However, CIOs must prepare to manage the challenges of evaluating and selecting new vendors that may not have proven track records in the financial services vertical or may simply be new and untried without an extensive customer base."

Digital Banking Market Development

Gartner advises bank CIOs to work with business leaders and other key stakeholders to assess the bank's comfort with, and ability to manage, the risks associated with using new providers, especially financial technology startups.

One of the most important reasons why the market for digital banking solutions has evolved is because most legacy vendors that offer software applications have been slow to react to demands of progressive digital banking services.

Incumbent vendors often don't support open architectures that decouple the presentation of services from the banking services and transactions -- that handicaps the bank, by making it very difficult to offer innovative digital services.

As a result of the forward-looking requirements, new vendors have emerged with digital banking capabilities that enable bank business and IT staff to offer software applications that support personalized, customer-centric banking experiences.

Open Unified Digital Banking Platforms

New solutions make it possible to deliver digital products and services, and create a multi-dimensional customer experience across all devices and channels. They enables the bank to develop and deliver online services for use by both bank staff and customers, via any device or channel.

According to the Gartner assessment, digital banking platforms may include a broad range of capabilities including financial management, payments, marketing, loyalty, analytics and customer communication management.

Gartner views open unified digital banking platforms as an emerging technology, even though some of the solutions on the market -- including some from niche banking system vendors -- have been available for several years.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of