Banks refocus their future visions on resilience and shoring up revenue opportunities
In 2022, nothing is business as usual for banks. At the start of the year, banks were already struggling to keep up with the rapid pace of change in the banking sector, coupled with the aftereffects of the global pandemic and rising consumer expectations — and the world continues to evolve.
In June 2022, Sopra Steria commissioned Forrester Consulting to evaluate banks’ strategic focus and future readiness in digital banking. This is the second installment of the annual benchmark study. To explore this topic, Forrester conducted an online survey of 792 senior decision-makers at banks globally with responsibility for credit/lending, customer experience, digital banking, open banking or ecosystem initiatives, payments, and the technology stack.
We found that, while banks have made considerable progress on their digital banking transformations, new circumstances and environments hinder their path to future readiness, leaving most feeling less confident. As a result, banks will further extend their collaborative business models and rely more heavily on their vendors for assistance in coping with fast-moving market dynamics.
With a looming downturn, future-proofing business models is an even stronger imperative for banks
One-third of survey respondents noted their banks fear an economic recession while supply chain disruptions have already impacted their businesses.
Banks have to split their attention between innovating to counter the downturn and increasing operational resilience, while cutting back on budgets and head counts.
Banks restructure their future roadmaps to build resilience and capitalise on growth opportunities
Immediate imperatives include fortifying cybersecurity and supply chains to bolster resilience. Simultaneously, banks are prioritising the creation of new revenue streams, such as by improving environmental sustainability and supporting the financial well-being of customers.
Banks struggle to transform by themselves
Transformation is proving hard for banks as their confidence in their future readiness decreased this year with the biggest drops in process and structure and cross-functional, agile collaboration — both crucial aspects to drive change and evolution towards collaborative business models.
Banks will rely more heavily on their vendors to cope with fast-moving market dynamics
Almost two-thirds of banks (65%) prefer to turn to third parties rather than build homegrown solutions. Investments go to higher-tech vendors with capabilities that help banks move the needle with their ecosystem ambitions, as challenges become more acute and environments more difficult.