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.
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.
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.
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.
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.