Banks compete on customer experience.
Since the iPhone debuted in 2007, industry leaders have dramatically increased technology investments to make financial services more personalized, convenient, secure, and accessible for customers.
Front-office initiatives, such as digital customer onboarding and servicing, have received a great deal of attention and investment. But findings from Kyndryl's survey with American Banker suggests banking leaders are shifting how and where they invest. When asked which legacy technologies banks are prioritizing for modernization over the next two years:
- 36% of respondents are prioritizing internal IT systems
- 32% are prioritizing digital channels and data analytics stacks
- 28% are focusing on processing
The findings speak to a trend we see in the banking sector: building a next-generation back office to continue the evolution of customer-centric experiences.
Listed below are several factors which I encourage customers to keep in mind for back-office modernization efforts. North America-based Comerica Bank is already applying some of the ideas to become a cloud-first bank. I share a bit of their story as well.