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

How to Drive Value Creation from Digital Business

Across the globe, many forward-thinking CEOs and CFOs continue to fund business technology investments that enable meaningful and substantive digital transformations, ahead of their industry peer group. That's why CIOs and other IT leaders must now accelerate the quest for value creation and drive digital growth from those ongoing investments, according to the latest market study by Gartner. "The pressure on CIOs to deliver digital dividends is higher than ever," said Daniel Sanchez-Reina, VP Analyst at Gartner . "CEOs and boards anticipated that investments in digital assets, channels, and digital business capabilities would accelerate growth beyond what was previously possible." Digital Business Market Development   CIOs expect IT budgets to increase 5.1 percent on average in 2023 -- that's lower than the projected 6.5 percent global economy inflation rate. A Gartner survey analysis revealed several ways in which CIOs can deliver "digital dividends&qu

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

How to Apply Sustainability to Drive Value Creation

Global climate change policy initiatives have been an emerging topic for CEOs and their leadership teams, as they look to the future. Many organizations are preparing to play their part and help reduce carbon emissions. Eighty-seven percent of business leaders expect to increase their organization’s investment in sustainability over the next two years, according to the latest worldwide market study by Gartner. Customers are the stakeholder group creating pressure for these organizations to invest or act on sustainability issues -- selected by 80 percent of executives, followed by investors (60 percent) and regulators (55 percent). Sustainability Market Development "Sustainability enables businesses to cope with disruption," said Kristin Moyer, VP analyst at Gartner . "Economic uncertainty, geopolitical conflict and escalating materials and energy costs are forcing businesses to reexamine all forms of expenditure." According to Gartner, this focus on essentialism --