Upcoming ISG Provider Lens™ reports will examine digital providers and platforms as the COVID-19 pandemic pushes banks to embrace online services
Information Services Group (ISG), a leading global technology research and advisory firm, has launched two research studies examining providers of digital banking services and digital banking platforms as the COVID-19 pandemic forces financial institutions to embrace new ways of doing business.
“Banks are seeking ecosystem partners to help them leverage new technologies, embrace innovation and tackle the ever-changing challenges of an increasingly digital world, while staying competitive and attracting customers.”
The study results will be published in two comprehensive ISG Provider Lens™ reports, called Digital Banking Services and Digital Banking Technology & Platforms, scheduled to be released in November. The report on digital banking services will cover such offerings as digital modernization, governance, risk and compliance services and payment processing, while the platform report will evaluate a variety of platform-based solutions, from core banking to digital engagement.
Enterprise buyers will be able to use information from the reports to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.
Beginning in July 2021, all ISG Provider Lens evaluations will feature new and expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research. Enterprise customers wishing to share their experience about a specific provider or vendor are encouraged to register here to receive a personalized survey URL. Participants will receive a copy of these reports in return for their feedback.
The new reports look come at a time when the banking industry faces major changes accelerated by the COVID-19 pandemic, said Owen Wheatley, lead partner for banking and financial services with ISG. “The banking industry is undergoing a massive digital disruption, with digital customer engagement, reimagined contact centers and next-generation apps becoming the norm,” he said. “Banks are seeking ecosystem partners to help them leverage new technologies, embrace innovation and tackle the ever-changing challenges of an increasingly digital world, while staying competitive and attracting customers.”
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For the digital banking services report, ISG has distributed surveys to 30 providers. Working in collaboration with ISG’s global advisors, the research team will produce four quadrants representing the services and products the typical enterprise client is buying in the digital banking space, based on ISG’s experience working with its clients. The four quadrants that will be covered are:
- Core Modernization and Integration Services, analyzing providers that help banking clients maintain competitive relevance and attain operational excellence in a digital-first environment. With the goals of optimizing customer experience, reducing operating costs and enhancing service quality, such services also help banks manage risk and regulatory compliance more effectively.
- Banking Governance, Risk and Compliance Services, looking at providers that support banks in enabling effective corporate governance, mitigating enterprise-level risk and meeting regulatory compliance requirements. This quadrant analyzes portfolios offered by service providers on GRC system integration and managed services to account for risk arising from IT systems, data and legacy applications.
- Transformational and Digital Banking Services, assessing providers that can offer relevant technology to allow business process solutions to enable and enhance the digitalization roadmap of financial institutions. While a large proportion of banking operations are carried out via an electronic platform, digital banking should eliminate all processes requiring paperwork as well as reduce manual effort significantly. These services should offer high levels of process automation, web-based services and enhanced security.
- Payment and Card Processing Services, measuring the ability of managed service providers to help organizations create, implement and support payment-based business services in the global payment ecosystem. Through this ecosystem of payment processors, payment networks, merchants, banks and other intermediaries, providers support their customers in deploying and operating proprietary platforms and technology services.
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For the digital banking platforms report, ISG has distributed surveys to about 140 platform vendors. The research team will produce four quadrants representing the services and products the typical enterprise client is buying in the banking platforms space. The four quadrants are:
- Core Banking Platforms, analyzing software vendors supporting the core business processes of banking companies. Core banking is defined as the processes that perform daily banking transactions and account activities, irrespective of the type of customer. Hence, core banking software is the most crucial part of every bank.
- Open Banking Solutions, covering software vendors that support the free movement of financial information between banks and a growing list of approved third-party providers. Open banking solutions offer the opportunity to transform banks to an API-connected, platform-based business model that identifies new products and processes.
- Payment Processing Platforms, assessing providers of platforms and solutions specifically designed for supporting traditional and real-time payment transaction and processing. The platform serves to establish communication and processing between banks, merchants and customers. The solution covers retail and corporate customers, acting as a holistic payment processing platform, including enhanced functionalities such as low- and high-value, real-time, cross-border or international payments.
- Digital Banking Engagement Solutions, analyzing providers of solutions that enable and support the digital transformation journey of banks by providing omni-channel, mobile access to banking products and services. The solutions offer a transformational layer that allows legacy systems to be digitized and optimized to support emerging technologies. The platform also acts as a bridge and integrates existing systems and infrastructure with innovative API-led applications and microservices to offer enhanced customer experience.
The banking services report will cover the global digital banking market and examine products and services available in the U.S., Germany, the U.K., Switzerland and the Nordic countries. The banking platforms report will cover the global market as well as platforms available in the U.S. and Europe. ISG analysts Gowtham Kumar and Lutz Peichert will serve as authors of both reports.
A list of identified providers and vendors and further details on the study are available in these brochures: Digital Banking Services and Digital Banking Technology & Platforms. Companies not listed as digital banking providers can contact ISG and ask to be included in the studies.
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