Retail Banking

The Market Challenge

With the economic backdrop of ultra-low interest rates set to continue, achieving top-line revenue growth will remain a challenge and driving efficiency improvement will persist as key driver for driving financial return. However, the industry itself is being disrupted. Regulatory change is forcing banks to expose their systems through APIs, challenging banks as to where they play in the value chain, which is also being cherry-picked by FinTechs benefiting from the cost advantages of cloud and reach of mobile-based models.

This while the imperatives of regulatory compliance and efficiency remain, driving through digital transformation and delivering innovation has shifted from important to critical.

How Ovum Helps You

Understand how regulatory imperatives and digital transformation strategies will drive ICT investment priorities for 2018

Maximise your market impact, by using Ovum’s independent research to understand exactly what is driving retail bank IT investment agendas at a country and regional level

Stay ahead of the competition, by understanding how to effectively position technology offerings to the business needs of retail banks

“The top 1,000 retail banks will spend over $125bn on technology in 2018”

Key Deliverables

ICT Enterprise Insights – Global survey of retail bank pain points and IT buying intentions for 2018-19

ICT Spending Forecasts – Global 5 year projections for retail bank IT spending, segmented by country, source and line of business

Banking Software Contracts Analytics – Global analysis of packaged software deals, segmented by institution, vendor and solution area

Ovum Decision Matrix – Analysis of the leading vendors solutions in key areas, including digital channel platforms, and financial crime

Themes for 2018

Delivering the digital customer experience
Attention to the digital experience has focused on mobile and online channels for most banks, however, this has shifted to realization that actual customer experience in the digital economy extends to all channels and customer-facing processes that support these. Delivering a seamless, straight-through experience that supports the wider customer journey is critical, but requires platforms that can manage the user-experience, taking advantage of new technologies in biometrics, augmented reality, natural language processing and AI-based services to enhance both human and direct customer engagement.

 

Driving through digital transformation
As banks realize digital is about the bank itself rather than a channel, there has been increasing assessment of how culture, governance, processes, and structures enable banks to operate in a digital world. While such transformation must occur at the business level, this is also driving significant change for technology, requiring platform modernization, new approaches to delivery, and ability to source and adopt new technologies and systems more effectively. The ability to leverage cloud and extract value from data will be critical.

 

Managing risk, security and compliance
The basics of banking – managing risk and providing security – remain core tenets of the digital world, with challenges intensifying as connectivity and external threats increase. Simultaneously, regulatory demands around financial crime and compliance management continue to escalate in breadth and reach with GDPR an important project for institutions with customers in Europe. Technology advances with Big Data, Artificial intelligence, data streaming processing and security offer potential solutions to balance the pressures of mandatory requirements and cost, but understanding real use cases and developing strategies to ensure these fit together effectively is critical for actually delivering potential benefits.

 

Embracing the API revolution
With regulatory interest in driving open APIs in banking quickly pervading across the globe, banks are realizing that open banking is not just another compliance requirement, but one that potentially will have significant impact on the industry itself. At an operational level, there is important considerations to be made around API management, but it is also driving wider focus around potential to create new services and work differently with the emerging FinTech ecosystem.

What’s New

Banking ICT Spending Predictor understand institution specific across digital banking, payments and other business function areas

Understand bank focus and priorities for deploying AI across the institution

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