German Banks Respond to Big Changes With Transformation
The ISG Provider Lens™ report indicates that German banks are undergoing significant digital transformation in response to increasing competition from fintechs and technology giants. The report outlines three main banking types in Germany—private, savings, and cooperative— and how they are adapting by developing neo-banks. It emphasizes the need for banks to specialize and engage with diverse technology providers to modernize their business models. The report evaluates 26 service providers, naming leaders in various quadrants, and highlights the rise of new payment technologies and open banking platforms.
- German banks are actively modernizing to enhance competitiveness.
- The report identifies leaders in digital banking services, showcasing industry recognition.
- Emphasis on specialization and partnerships may lead to innovative business models.
- Increased competition from fintechs and global tech firms challenges traditional banking models.
- Regulatory changes and integration across Europe introduce additional complexities for German banks.
Traditional banks are modernizing systems and business models as new competitors and products disrupt the industry, ISG Provider Lens™ report says
The 2022 ISG Provider Lens™ Digital Banking Services report for
“German banks built around traditional services and physical proximity to customers are ramping up efforts to modernize their approaches,” said
In the new banking landscape, institutions need to specialize for competitive advantage, so they are seeking partners to develop new digital business models, ISG says. Until the last few years, German banks shared an almost unchanging IT provider ecosystem that set the technology agenda. As waves of consolidation and competition overtake the industry, banks are beginning to engage with fintech startups, technology companies and a wider range of service providers.
Digital transformation at these banks has entered a second phase, the report says. After digitalizing processes to improve customer experience, banks are now undertaking deeper changes, affecting their business models and organizations. This phase will lay the foundation for constant innovation to keep up with new business requirements.
The evolution of banking regulations and increasing integration of banking across
“Banks modernizing for the future of the industry will need to integrate old and new systems into highly complex, hybrid landscapes,” said
The report also explores other trends in German banking, including the rise of new payment technologies and the emergence of open banking platforms based on microservices and APIs.
The 2022 ISG Provider Lens™ Digital Banking Services report for
The report names Accenture, Capgemini, GFT, IBM, Infosys and TCS as Leaders in all four quadrants. It names Deloitte, EPAM Systems and Sopra Steria as Leaders in three quadrants each.
In addition,
A customized version of the report is available from Capgemini.
The 2022 ISG Provider Lens™ Digital Banking Services report for
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (
View source version on businesswire.com: https://www.businesswire.com/news/home/20221213005296/en/
Press Contacts:
+49 151 730 365 76
philipp.jaensch@isg-one.com
+49 152 341 464 63
mlongo@palmerhargreaves.com
Source:
FAQ
What does the ISG Provider Lens report say about German banks?
What types of banks are mentioned in the ISG report?
Who are the leaders in the ISG Provider Lens Digital Banking Services report?
What trends are emerging in the German banking sector according to the report?