External reports

The Future Of Digital Banking, Revisited

Sopra Banking Software's externally written reports with analyst firms

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Page 22 of 27

Key Recommendations This year's survey revealed what a hard time the banks are having, not because they are doing anything badly, but because customer expectations continue to march forward and several unexpected global issues create a perfect storm for continued uncertainty. For many, the investments they made last year fixed some pandemic-driven issues, but largely led to them standing still. For 2023, eke out every drop of value from selective sourcing and ringfence discretionary budget for consumer-facing, differentiating innovation — not just cost efficiency. Forrester's in-depth survey of 792 senior decision-makers at banks about the future of digital banking yielded several important recommendations: Tackle the challenges head on. There is a risk that some of the issues this year will become systemic through failure to prioritize resolution effectively. Issues around hybrid working are driving down the confidence of banks in their ability to build future resilience, yet tackling it and redesigning workplaces is eighteenth on the list of next year's priorities. Also, watch the buildup of technical debt. It is easy to leave the data in silos or oil the creaking platforms, rather than replace them when economic conditions tighten. Don't make the mistake of kicking the can too far down the road as it will eventually stifle innovation. Use 2023 to pivot towards becoming a more purposeful organization. Two pivots are in play. Banks themselves are focusing hard on ESG and getting their own house in order. At the same time, the eventual response to the macroeconomic headwinds will increase hardship and financial difficulty for customers. People remember who helped them in hard times, and the strongest loyalty builds from that. Focus on well-being tools for customers — a perfect open finance use case. It is not by accident that Pioneers invest heavily in improving customers' well-being. THE FUTURE OF DIGITAL BANKING, REVISITED 23

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