GAUGING THE MARKET
STUDY SHOWS BANKS HAMPERED BY TECH MODERNISATION CHALLENGES AND LACK OF INDUSTRY STANDARDS
Recent research examined how customers engage with the digital world and how banks invest in embedded finance to become part of the financial journey consumers experience on their platforms of choice .
The IBM Institute for Business Value ( IBV ), in collaboration with the Banking Industry Architecture Network ( BIAN ) and Red Hat , has released findings from a new global study that reveals significant gaps between the stated priorities of surveyed banking executives and the customers they serve .
The research examines how customers engage with the digital world and how banks invest in embedded finance to become part of the financial journey consumers experience on their platforms of choice .
Embedded Finance : Creating the Everywhere , Everyday Bank details findings from the responses of over 1,000 banking industry leaders and more than 12,000 consumers across five continents .
Embedded finance is the integration of financial products and solutions within the customer journey of non-financial services organisations in ways that help eliminate friction and consequently enrich the customer experience .
Over 70 % of the industry executives surveyed indicate that embedded finance is either core or complementary to their business strategies . Yet only 20 % said they currently offer embedded finance solutions .
“ Banks are facing a double whammy of challenges with pressure coming from non-traditional competitors such as the big FinTechs that have set new standards for customer expectations and are eager to deepen those relationships and from regulators pushing for open banking standards to level the playing field and Drive more competition ,” said Shanker Ramamurthy , Global Managing
Partner Banking and Financial Markets , IBM Consulting . “ Establishing a modern hybrid cloud architecture that enables easy access to data across the enterprise , the ability to leverage the potential of emerging technologies such as generative
The ability to leverage the potential of emerging technologies such as generative AI and participation in a robust ecosystem of partners is paramount to a successful banking strategy in today ’ s industry . www . intelligentfin . tech
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