According to the World Retail Banking Report 2020 published by Capgemini and EFMA, retail banks face pressures to transform as new entrants focused on customer experience gain ground in the market.
As the pandemic environment pushes consumers to interact more digitally with their banks, platform models offer agility and scalability in times of uncertainty. The report found that platform-based banks find it up to twice as easy to increase operating profits, unlock new sources of value, and improve operational efficiency.
The report shows the global financial industry is in the midst of a historic transformation as agile, digital-native non-traditional players continue to champion the customer experience and redefine long-held principles to gain significant market traction. .
With more than half (57%) of consumers now preferring Internet banking services, compared to 49% before Covid-19 and 55% preferring mobile banking applications compared to 47% previously, the stakes have further increased with Covid-19. the context continues to push consumers towards digital banking.
âTraditional banks are challenged to meet these expectations as new digital-native entrants focus on the customer experience from day one,â said Anirban Bose, CEO of Capgemini Financial Services and Member of the Executive Board of the group.
âBanks that now invest in modernizing their core technology and evolving it into a platform-based experience will simultaneously delight customers and grow profitably,â he said.
CEO of global nonprofit Efma John Berr said Covid-19 shed light on the digital banking experience. “The modernization of existing systems must be a priority for banks seeking to accelerate their growth, because customer expectations keep rising and those who neglect this risk fall behind.”
The World Retail Banking Report 2020 is based on research results from the Global Retail Banking Executive Survey 2020, interviews with executives and the Capgemini Open X Readiness Index. The report includes information from targeted interviews and surveys of more than 80 senior executives from major banks in all regions.