Rapid changes in technologies, consumer
choices and laws kick off transformations across the banking
industry, ISG Provider Lens™ report says
Banks in the U.K. are carrying out large-scale technology
transformations in response to evolving regulations, changing
customer expectations and the emergence of new innovations and
competitors, 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.K. finds that banks need to do business in new ways as more
consumers turn to online and mobile forms of banking, especially in
the wake of the COVID-19 pandemic. Rising competition from FinTech
startups and other non-bank alternatives offering retail banking,
loans, embedded finance offerings and securities trading has also
made digital transformation a greater imperative.
“The ongoing wave of disruption in the banking industry, coupled
with changing U.K. banking regulations, have set the stage for
major modernization projects at both domestic and global banks in
the U.K.,” said Owen Wheatley, lead partner, banking and financial
services at ISG. “Legacy core banking platforms need to evolve and
transform quickly.”
To meet new market and legal requirements, banks in the U.K.
increasingly are taking advantage of new technologies, including
AI, machine learning, robotic process automation (RPA), natural
language processing (NLP), intelligent automation and analytics,
ISG says. These tools enable capabilities that benefit both
internal operations and customer experience.
The need to comply with new regulations is also driving U.K.
banks to modernize their systems and introduce new features. Among
other concerns, banks need to implement solutions to comply with
Basel 3.1 regulations on capital frameworks and risk, new rules on
operational resilience against future events like the pandemic, and
Payment Services Directive 2 (PSD2), covering customer security and
integration of APIs through open banking frameworks. Banks also
need to comply with tighter rules on detecting and reporting
financial crime and money-laundering, a rising concern as
geopolitical issues generate more international sanctions.
U.K. banks are updating their technology around payments and
card processing to meet consumers’ demands for new features that
give them more options, the report says. Real-time payments,
embedded finance (buy now, pay later), digitalized cards and
payment-as-a-service, plus greater monetization of data about
payments, require the transformation of legacy banking
platforms.
“Non-bank players are changing the game for many consumers,”
said Jan Erik Aase, partner and global leader, ISG Provider Lens
Research. “Service providers can help traditional banks update
their technology to compete and enter new segments.”
The report also explores a range of other issues facing banks in
the U.K., including the emergence of digital currencies and
cryptocurrencies and the role of banks in financing and
facilitating transitions to net-zero emissions.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the U.K. evaluates the capabilities of 26 providers across four
quadrants: Core Modernization and Integration Services, Technology
Transformational Services for Digital Banking, Banking Governance,
Risk and Compliance Services, and Payment and Card Processing
Services.
The report names Accenture, Capgemini, Cognizant, HCLTech,
Infosys, TCS and Wipro as Leaders in all four quadrants. It names
Deloitte as a Leader in three quadrants and Atos, IBM and LTI 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
two quadrants.
A customized version of the report is available from
Capgemini.
The 2022 ISG Provider Lens™ Digital Banking Services report for
the U.K. 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/20221201005453/en/
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Kate Hartley, Carrot Communications for ISG +44 (0)20 3457 6403
kate.hartley@carrotcomms.co.uk
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