GAUGING THE MARKET
“ It has never been more critical for banks to focus on how financial institutions can increase theircompetitive edge and improve the experience they provide their customers . The findings from the research show just how much work banks have to do before they can achieve this ,” said Hans Tesselaar , Executive Director , BIAN . “ We know from the work we ’ re doing with our members , however , that before they implement real changes to their service offerings , they must first overcome the obstacles caused by a lack of technical standards and adopt a coreless banking approach to transformation . This will help the industry benefit from each and every technological development to create the bank of the future .” �
Key Takeaways
• Embedded finance is essential for modern banking strategies – 70 % of banking executives say embedded finance is either core or complementary to their business strategy .
• Ecosystem-based business models are rising . Financial institutions are increasingly investing in the platform economy , with 20 % of organisations already offering embedded finance solutions . Yet bank executives ’ priorities don ’ t align with consumer demands . Bankers underappreciate the value of mobile wallets , personalised rewards and satisfying customer services .
• Monolithic architectures and processes hinder banking ambitions . Foundational gaps in modernisation and API standardisation are hampering embedded finance outcomes .
• Privacy and security challenges slow innovation across open ecosystems . As generative AI takes center stage , CEOs of financial institutions cite privacy and cybersecurity as the top two barriers to deployment – more than CEOs from any other sector .
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