Gartner Inc. has recommended that bank operators should adopt open unified digital banking to increase efficiency to their customers.
The technology research company says that banking industry players adopt this approach to deliver the next-generation digital services, otherwise face a big challenge from new vendors who are emerging to meet both customer and bank needs.
Gartner, in its new report, predicts that by the end of 2019, 25% of retail banks will use startup providers to replace legacy online and mobile banking systems, saying that incumbent application vendors have been slow to respond to new requirements for digital banking.
[quote font_size=”22″ font_style=”italic” align=”left” bgcolor=”#” color=”#” bcolor=”#” arrow=”yes”]”Gartner, in its new report, predicts that by the end of 2019, 25% of retail banks will use startup providers to replace legacy online and mobile banking systems, saying that incumbent application vendors have been slow to respond to new requirements for digital banking.”[/quote]Stessa Cohen, Research Director at Gartner says that “startups and emerging providers of digital banking platforms offer banks interesting opportunities for innovation”, and that these new vendors are emerging to meet both customer and bank needs for channel integration and dynamic customer experiences that make banking easier to accomplish on the devices customers want to use.
Gartner advises bank CIOs to work with business leaders and other key stakeholders to assess the bank’s comfort, and the bank’s ability to manage the risks associated with using new providers, especially financial technology startups.
It therefore recommends open unified digital banking solutions, which according to Gartner, make it possible to deliver new digital products and services, and create a multidimensional customer experience across all devices and channels.
Gartner says that the open unified digital banking solutions enables the bank to develop and deliver services for use by both bank staff and customers, via any device or channel.
Gartner views open unified digital banking platforms as an emerging technology, even though some of the solutions on the market, including some from niche banking system vendors, have been available for several years.
Gartner further shows the various fragments of the market for digital banking platforms, which it says vendors include: Incumbent bank niche vendors, Mobile or online banking solution vendors, Horizontal digital platform and customer experience vendors, Horizontal portal vendors, System integrators and Emerging digital banking vendors
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