External reports

The Future Of Digital Banking, Revisited

Sopra Banking Software's externally written reports with analyst firms

Issue link: https://read.uberflip.com/i/1482142

Contents of this Issue


Page 9 of 27

Banks already had a full agenda in 2021, and the world continues to evolve. What passed for good last year is now superseded by digital innovations and experiences that continue to raise the bar; consequently, banks are less confident in their ability to execute as they struggle to tackle ongoing transformation and constantly evolving consumer expectations simultaneously. Our future-readiness scoring framework examines five categories that are essential for a rounded operating model: 1) strategy; 2) culture, talent, and skills; 3) ecosystem engagement; 4) process and structure; and 5) technology and integration. 6 Transformation is proving hard for banks as respondents' confidence in their future readiness decreased across all categories this year (see Figure 4). Year-on-year comparison reveals the biggest drops are in the areas of: • Process and structure. Together, process and structure formalize the operating model to drive change and evolution during transformation. Failing to formalize processes makes it harder for banks to achieve business outcomes and puts future strategy at risk. • Cross-functional, agile collaboration. Collaboration is a pressing issue for banks and crucial for ecosystems and collaborative business models. Banks are now facing challenges with cross-functional, agile working methods and collaboration, exacerbated by the shift to a hybrid workforce post- pandemic. 7 Future readiness continues to vary across regions and company sizes. From a regional perspective, Latin America, North America, and Asia are most impacted as the number of respondents whose banks fall in the Explorer category has risen by 13%, 20% and 32%, respectively, compared to the previous year, bringing them to the top of the list for largest representation of Explorers. Latin America and Asia have far tougher competition in the form of superapps, such as Gojek, Grab, and WeChat, which raise the bar high for digital experience; emulating and meeting the higher expectations of customers in these regions presents a tougher challenge. Europe, despite a challenging environment, saw an overall improvement with a slight rise in Pioneers (+1%) and Specialists (+7%). Banks' Confidence Falls As They Struggle To Transform By Themselves THE FUTURE OF DIGITAL BANKING, REVISITED 10

Articles in this issue

view archives of External reports - The Future Of Digital Banking, Revisited