Sopra Banking Software's externally written reports with analyst firms
Issue link: https://read.uberflip.com/i/1482142
DIGITAL BANKING CHALLENGES AND DISSATISFACTION WITH VENDORS FURTHER HINDER TRANSFORMATION Although banks have made considerable progress handling familiar challenges — especially in critical areas such as cyber and data security — they remain critical hurdles banks still grapple with. All the while, new imperatives are arising as banks progress with their digital transformation and ecosystem approaches. The main challenges that respondents reported this year are (see Figure 5): • Data interoperability. As collaboration with third parties grows and ecosystems progress, ensuring data interoperability (27%) and flow between internal and external systems (25%) are respondents' banks' biggest challenges. The lack of a clear overview of their data also impedes banks from successfully building end-to-end customer journeys across partners, which one in five reports as a challenge. • Security concerns and legacy systems. Even though they appear to be less severe, top challenges from last year continue to be a problem with legacy systems slowing down development (24%) as well as security concerns around ensuring cybersecurity across the network and infrastructure (24%) and data (23%). • Budget constraints and competition. One out of five respondents also report budget constraints as a challenge as well as an increased competition from digital-first providers (24%) and concerns around disintermediation (22%). • Dissatisfaction with digital banking technology providers. More than one-quarter (26%) of respondents from the Explorer and Intermediate segments stated that their organizations were not satisfied with their technology providers' digital banking capabilities. Only 6% of Pioneers reported the same, indicating that more mature banks are sustaining better partnerships and working more effectively with their partners. THE FUTURE OF DIGITAL BANKING, REVISITED 12