Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, has launched a research study examining service providers helping banks evolve their technology and business processes to better compete in today’s increasingly crowded market.
Study results will be published in a comprehensive ISG Provider Lens™ report called Digital Banking Services 2023, scheduled to be released in October. The report will cover provider services, including core modernization technology and integration, payment modernization technology, and banking business processes.
Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.
Banking services providers play crucial roles in helping banks keep up with rapidly evolving business processes, new business models, and increasing challenges posed by Big Tech and challenger banks. These providers also assist banks in managing risk effectively, meeting changing regulatory requirements and ultimately remaining relevant and future-proof.
“Legacy payment engines, core banking modules, and inadequate data capabilities impede banks from achieving the benefits of customer centricity and successful banking business outcomes,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers deliver talent, processes, technology and know-how to enable banks to attain digital transformation.”
For the study, ISG has distributed surveys to more than 35 digital banking services providers. Working in collaboration with ISG’s global advisors, the research team will produce three quadrants representing the digital services and products the typical bank is buying, based on ISG’s experience working with its clients. The three quadrants to be covered are:
- Core Banking Technology and Integration Services, evaluating providers offering implementation, modernization and integration services for core banking systems, enabling banks to remain competitive, effectively manage risk and meet dynamic regulatory requirements in a digital-first environment.
- Payment Modernization Technology Services, covering providers that help banks reengineer, implement and support their global payment businesses with solutions offering fraud protection, compatibility with existing back-end platforms and supporting new payment acceptance methods such as e-wallets, QR Codes, and IoT-based payments.
- Banking Business Process as a Service, assessing providers that offer end-to-end technology, business operations and support capabilities, including regulatory governance, risk and data management, and cybersecurity. These partners manage IT and business operations across banks’ front, back and middle offices, incorporating modern technologies such as intelligent automation, advanced analytics, AI and ML.
Geographically focused reports from the study will examine products and services available in Brazil and the U.S. ISG analysts Adriana Frantz (Brazil) and Avinav Chowdhury (U.S.) will serve as authors of the reports.
A list of identified providers and vendors and further details on the study are available in this digital brochure. Providers not listed in the brochure can contact ISG and ask to be included in the studies.
All 2023 ISG Provider Lens™ evaluations now feature new and expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research. Enterprise customers wishing to share their experience about a specific provider or vendor are encouraged to register here to receive a personalized survey URL. Participants will receive a copy of this report in return for their feedback.