Sopra Banking Software's externally written reports with analyst firms
Issue link: https://read.uberflip.com/i/1420103
• Enhanced trust. One of banks' biggest assets is consumer trust. Trust sets banks apart from almost all other platforms that can offer financial services. 16 Successful banks will selectively leverage and extend the trust they already have, and ecosystems are a means to do this. Thirty-nine percent of respondents reported increased trust in their banks as an expected benefit. BANKS PLAN TO USE VENDORS TO BOOST EMERGING TECHNOLOGY ADOPTION AND MATURE DIGITAL CAPABILITIES It is clear that most banks need help as their digital capabilities and application landscapes are not yet in a shape that would allow them to cope with the forces that are changing the industry. 17 Historically, banks are less accustomed to external collaboration and openness, and are used to having an inside-out rather than outside-in perspective. 18 According to our study, respondents recognized that their banks can't do it all on their own and plan to engage vendors for support. Ecosystems (and true collaboration) are relatively new territory for most, and banks are looking for assistance across a wide range of areas. Areas they are most keen to get assistance from vendors include (see Figure 8): • Maturing their future digital capabilities and integrating with ecosystem partners. Most survey respondents reported that their banks will augment their services with a third party — or even source them exclusively from a third party — to deliver digital banking capabilities. Capabilities that are most likely delivered in this way tend to be related to partner ecosystems and include integration and data exchange with third parties (67%); internal capabilities offered as a service to third parties (65%); and open finance APIs offered via a developer portal (64%). • Embracing emerging technologies. When it comes to emerging technologies, more than a third of respondents reported that their banks plan to invest externally in the next 12 months by outsourcing to another provider, including 5G networking (53%); internet of things (IoT) or connected devices (46%); and artificial intelligence/machine learning (43%). However, banks are more cautious when it comes to addressing their biggest challenges. They want to keep control and build themselves when it comes to technology for regulation (54%) and data security (50%). MASTER ECOSYSTEMS TO BE FUTURE-READY IN BANKING 19