New Research, Demystifying Digital Transformation in Banking, finds nearly half of banks are missing key elements to build sustainable digital transformation strategies

NEW YORK, Jan. 5, 2022 /PRNewswire-PRWeb/ -- New Arizent Research for American Banker, conducted with Thought Machine, Demystifying Digital Transformation in Banking, finds that banks are embracing some common elements across digital transformation initiatives but are often missing two critical areas in their roadmap – cloud strategy and core modernization. In fact, just 56% of banking executives surveyed report having core banking modernization as part of their digital transformation strategy and fewer than half (44%) have a cloud migration plan. This report examines the digital transformation practices banks are embracing and the challenges they are facing as they seek to accelerate transformation and lead the next era of consumer finance. Among the key findings:

Banks most commonly focus on digital product development, operational efficiencies and AI/data analytics as core elements of their digital transformation strategies. To most successfully advance these goals, however, requires investment in critical infrastructure such as core banking platforms and the opportunity to tap into the flexibility and scalability of cloud to meet the demands of modern-day banking.

Yet, just 4 out of 10 banks responding have started a core banking modernization journey. Among the majority who have not yet embarked on that journey, half are still in the planning phase and have not yet selected a vendor for that initiative. Concerns about integration with external systems and products top the list of challenges slowing those efforts.

While 8 in 10 banking leaders surveyed note their institution has a cloud strategy in place, less than half of those surveyed have a cloud strategy that pertains to both their core banking platform and product roadmap introducing potential roadblocks to long-term transformation.

Research Background/Methodology
American Banker, an Arizent publication, conducted this survey to understand how banks are approaching the modernization of their core banking systems, including the progress toward adopting next-gen core systems, their propensity to choose cloud native core systems, and the challenges to modernization. The survey was conducted online during the second half of 2021 among 102 digital transformation stakeholders at banks and credit unions. About 25% of the respondents surveyed are from banks with more than $50 billion in assets, 35% have $10-$49 billion in assets and the remaining 40% have assets of less than $10 billion.

Interested in learning more? Please join Web seminar: Demystifying digital transformation in banking

For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806

About Arizent Research
Arizent delivers actionable insights through full-service research solutions that tap into their first-party data, industry SMEs and highly engaged communities across banking, payments, mortgage, insurance, municipal finance, accounting, HR/employee benefits and wealth management. They have leading brands in financial services including American Banker, The Bond Buyer, Financial Planning and National Mortgage News, and in professional services, such as Accounting Today, Employee Benefits News and Digital Insurance. For more information, please visit http://www.arizent.com

About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.

About Thought Machine
Thought Machine was founded in 2014 with a mission to enable banks to deploy modern systems and move away from the legacy IT platforms that plague the banking industry. We do this through our cloud native core banking platform, Vault. This next generation system has been written from scratch as an entirely cloud native platform. It does not contain a single line of code which is legacy, or pre-cloud.
We are currently a team of more than 500 people spread across offices in London, New York, Singapore, Sydney, and Melbourne, and have raised more than $340m in funding at a $1bn+ valuation.
For more information visit thoughtmachine.net

Media Contact

Janet King, Arizent, 207-807-4806, [email protected]

SOURCE Arizent