Banks in Germany, Austria and Switzerland (DACH) are looking to transform and improve customer experiences, and many are turning to technology service providers to help them manage and modernise their core banking systems, according to a new report published today by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens Banking Industry Ecosystem Report for the DACH region finds banks there, amid rising competition from the fast-growing FinTech industry, are looking to service providers to help them attract and retain customers through technology-driven, easy-to-use loan and credit solutions.
While many banks in the region have typically used internal resources to update their technology, large banks are beginning to rely on service providers, while small banks are building their own core banking systems, with support from technology providers.
“No matter their size, transforming the customer experience is the top priority of most banks in the region,” said Johanna von Geyr, ISG partner based in Germany and Co-Leader of the firm’s EMEA BFSI industry practice. “For retail banks, as switching costs for customers plummet, millennial buying power soars and non-traditional banking alternatives proliferate, the ability to attract and retain customers is more critical today than ever before.”
The report also finds non-cash payment methods becoming increasingly relevant in the region, with Germany becoming a major financial powerhouse in Europe. Switzerland has also seen a major shift to contactless payments and card systems, with several companies using it as a test bed for new payment options.
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