External reports

Digital Banking Experience Report

Sopra Banking Software's externally written reports with analyst firms

Issue link: https://read.uberflip.com/i/1420103

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Page 12 of 26

Capability And Ecosystem Challenges Hinder Transformation Our study found that readiness for digital banking varies across regions and company sizes. From a regional perspective, Asia leads the pack with over half of respondents' organizations falling into the Specialist (41%) and Pioneer (13%) categories. A perfect storm of digital disruption, rising customer expectations, rapid proliferation of consumer technology, and new digital-only competitors have forced Asian banks to innovate and raise their game to compete. 12 Africa, the Middle East, Europe, and Latin America have the largest representation of Explorers, ranging from 39% to 44% per region. When it comes to company size, we found that midsized banks were the most advanced; smaller banks struggled to build the internal capabilities and lacked the engineering ability to control their own destiny, whilst larger banks frequently exhibited challenges around agility and scale that hampered innovation. Against a backdrop of faster change cadence, regulatory compliance, and budget pressure, the top challenges that banks struggled with — both in their digital banking and their ecosystem ambitions — remained foundational. Respondents reported that their banking organizations primarily struggled with: • Delivering digital banking capabilities. Three themes surfaced from the top challenges (see Figure 5): – Security concerns. Ensuring data security and cybersecurity across network and infrastructure was the top reported challenge for nearly 40% of respondents. This is particularly pertinent as 35% of respondents reported increased competition from digital-first competitors and the need to have confidence in the capabilities they build to counter this threat — capabilities that increasingly involve collaboration with external parties. Africa, the Middle East, Europe, and Latin America have the largest representation of Explorers. MASTER ECOSYSTEMS TO BE FUTURE-READY IN BANKING 13

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