FRANKFURT, Germany, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Banks in Germany, Austria and Switzerland (DACH) are looking to transform and improve customer experiences, and many are turning to technology service providers to help them manage and modernize their core banking systems, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens™ Banking Industry Ecosystem Report for the DACH region finds banks there, amid rising competition from the fast-growing FinTech industry, are looking to service providers to help them attract and retain customers through technology-driven, easy-to-use loan and credit solutions.
While many banks in the region have typically used internal resources to update their technology, large banks are beginning to rely on service providers, while small banks are building their own core banking systems, with support from technology providers.
“No matter their size, transforming the customer experience is the top priority of most banks in the region,” said Johanna von Geyr, ISG partner based in Germany and co-leader of the firm’s EMEA BFSI industry practice. “For retail banks, as switching costs for customers plummet, millennial buying power soars and non-traditional banking alternatives proliferate, the ability to attract and retain customers is more critical today than ever before.”
The report also finds non-cash payment methods becoming increasingly relevant in the region, with Germany becoming a major financial powerhouse in Europe. Switzerland has also seen a major shift to contactless payments and card systems, with several companies using it as a test bed for new payment options.
The COVID-19 pandemic has driven customer demand for non-cash and contactless payment options, the report adds. Many banks are seeing the benefit of outsourcing payments services, as service providers have demonstrated proven capabilities in the area. Many banks in the region are investing in software-as-a-service platforms, as well as banking-as-a-service and open banking payment platforms.
In addition, banks in the region are looking to technology service providers to help them with know-your-customer and anti-money-laundering regulations, as European authorities step up enforcement of financial crimes, the report says. A large number of banks are moving toward automated anti-money-laundering checks to improve scaling and speed and to reduce false positives. In some cases, service providers are partnering with smaller FinTech companies to develop integrated solutions.
The 2020 ISG Provider Lens™ Banking Industry Ecosystem Report for the DACH Region evaluates the capabilities of 26 providers across four quadrants: Core Banking Platform Implementation Services for Retail, Core Banking Platform Implementation Services for Corporate, Payment Ecosystem Services and Know-Your-Customer/Anti-Money-Laundering Services.
The report names Accenture and DXC Technology as leaders in all four quadrants. Capgemini was named a leader in two quadrants, and Atos, IBM, Infosys, TCS and Validatis were named leaders in one. In addition, TCS was named a Rising Star—companies with “promising portfolios” and “high future potential” by ISG’s definition—in two quadrants, and Wipro and Worldline were named a Rising Star in one quadrant each.
A customized version of the report is available from Capgemini.
The 2020 ISG Provider Lens™ Banking Industry Ecosystem Report for the DACH Region is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe and Latin America, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.