Banks are focused on improving their brand loyalty by offering enriched customer engagement through hyper-personalized services. They are working toward modernizing their legacy core banking infrastructure and adopting cloud environments to achieve greater flexibility, improved integration with newer technologies, innovate effectively, and launch new products faster. Banks are navigating increased regulations and financial scrutiny post-2023 Silicon Valley Bank crisis by leveraging advanced analytics and AI-powered risk management and regulatory data reporting solutions. They are continuously boosting their cybersecurity posture to deal with increased vulnerabilities and prioritizing ESG goals to promote green financing and financial inclusivity.
Both demand- and supply-side trends are covered in Avasant’s Banking Digital Services 2024 Market Insights™ and Banking Digital Services 2024 RadarView™ , respectively. These reports present a comprehensive study of digital service providers in the banking industry, including top trends, analysis, and recommendations. The reports also closely examine the leaders, innovators, disruptors, and challengers in this market.
We evaluated 50 service providers across three dimensions: practice maturity, investments and innovation, and partner ecosystem. Of the 50 providers, we recognized 28 that brought the most value to the market during the past 12 months.
The reports recognize service providers across four categories:
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- Leaders: Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS, and Wipro
- Innovators: DXC Technology, FIS Global, LTIMindtree, Tech Mahindra, and Virtusa
- Disruptors: Atos, EXL, GFT, Genpact, Mphasis, Persistent Systems, and Zensar
- Challengers: Birlasoft, CGI, Coforge, Hexaware, Hitachi Digital Services, Infinite Computer Solutions, UST, and Unisys
Figure 1 below from the full report illustrates these categories:
“The banking industry is at a surge of innovation using emerging technologies to meet customer demands and enhance operational efficiency,” said Robert Joslin, partner at Avasant. “Banks need to modernize their legacy core infrastructure and adopt cloud ecosystems to integrate newer technologies and innovate faster.”
The reports provide several findings, including the following:
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- Banks are focusing on improving engagement and brand loyalty by providing AI and predictive analytics-driven hyper-personalized services to their customers.
- Banking enterprises are stepping toward modernizing their legacy core banking infrastructures to enhance integration with newer technologies, innovate faster, and improve operational efficiency.
- Banks are realizing the potential of the cloud environment and moving their data centers, workloads, and operations to the cloud to achieve greater flexibility, improved security, and scalability.
- Post the 2023 Silicon Valley Bank crisis, banks are adopting digital technologies to deal with increased regulatory compliance, financial scrutiny, and risk mitigation.
- Banking organizations are working toward building a strong cybersecurity posture to deal with increased cyber threats resulting from the digitalization of banking services.
- Banks are prioritizing their ESG goals by utilizing advanced AI and analytics-driven solutions to promote sustainable financing and financial inclusivity.
“Personalized services are key for banks to maintain brand loyalty and customer engagement,” said Praveen Kona, associate research director at Avasant. “Service providers must focus on utilizing AI-driven solutions and unique delivery models, at the risk of cannibalizing their traditional models, to help banks optimize and offer personalized services.”
The RadarView™ also features detailed profiles of 28 service providers, along with their solutions, offerings, and experience in assisting banking enterprises in their digital transformation journeys.
This Research Byte is a brief overview of the Banking Digital Services 2024 Market Insights™ and Banking Digital Services 2024 RadarView™ (click for pricing).