In brief
- The past year has poked holes in long-standing norms about how banks operate.
- 99% of banking executives agree that the COVID-19 pandemic created an unprecedented stress test for their organization.
- While it will be tempting for banks to retreat to what they know, 2020 emphasized the need for a different path.
- Those that continue to have a clear-eyed perspective on digital transformation will emerge as the leaders of the future.
Masters of change at a moment of truth
The COVID-19 pandemic was a stress test of unprecedented proportions for banks, putting their technology architecture, strategy and workforces under immense pressure. For most, the crisis was a sobering experience that dispelled any illusions about how far they had progressed with their cloud migrations and digital transformation.
Yet amid the many challenges of the pandemic, silver linings could be found in how quickly banks were able to adapt to a new reality. Most worked fast to rebuild their business with a digital core that could support a more flexible workforce, a more agile operating model and a range of emerging customer needs.
Banks worldwide have generally weathered the crisis well, playing a key role in channeling unprecedented public-sector stimulus, displaying flexibility on payments holidays and short-term credit, and rapidly deploying remote interaction solutions to make up for the lack of face-to-face engagement.
Their next challenge, after making technology and business model changes in a matter of months, will be to sustain the agility and innovation beyond the pandemic. The leading banks understand that the pace of change isn’t likely to slow down anytime soon—and they also know that COVID-19 has accelerated changes that would otherwise have taken years to materialize.
The Banking Technology Vision for 2021 identifies the emerging technology trends that hold the greatest potential to disrupt the industry beyond the pandemic. The cross-industry survey sample includes some 700 banking IT and business executives from around the world to get their perspectives on the technology trends shaping the world of finance.
- 68% of banking executives say the pace of digital transformation for their organization is accelerating
- 93% agree that organizations are operating with a renewed sense of purpose
2021 tech trends
In this report, we identify five Technology Vision trends that resonate for banks.
- Stack strategically
In the years ahead, banks will compete on their architecture. The winners will be those that build and wield the most competitive technology stack. - Mirrored world
Banks will be able to create living models of product lifecycles, customer behaviors and journeys, market scenarios and more. - I, technologist
Natural language processing, low-code platforms, robotic process automation and more put capabilities in the hands of those closest to the business. - Anywhere, everywhere
Beyond the pandemic, leading banks are considering how to transform remote work from an accommodation to an advantage. - From me to we
Banks are rethinking how they operate in the context of multiparty systems, Open Banking regulation and open data.
Accelerating transformation
COVID-19 catalyzed the biggest reinvention of banking since the global financial crisis. Now, senior leaders at banks are focusing on compressing what had been decade-long transformation agendas into two-to-three-year sprints. They know they cannot fall back on old practices if they are to get on the right side of the digital achievement gap.
Banks with a clear-eyed perspective are continuing to expedite their digital transformations, reimagining everything from their people and their data to their architectures and ecosystems. A new age of banking competition is dawning—one where architecture matters, and leaders will be decided not just on the success of their business plans, but on the ingenuity of their technology choices.
Register and view the full report HERE.
