Nordic Banks Accelerate Changes Amid Market Shake-up
The ISG Provider Lens™ report highlights significant transformations in Nordic banks as they shift from legacy systems to modern cloud-based platforms. Driven by changing consumer behavior and the rise of FinTechs, digitalization has become a priority. Major banks are adopting technologies like AI and blockchain and are collaborating on the P27 payment system to enhance competitiveness. The report evaluates 22 providers and names Accenture, Capgemini, and others as leaders across various quadrants.
- Nordic banks prioritizing digitalization to enhance competitiveness.
- Introduction of new technologies like AI and blockchain to modernize banking services.
- Collaboration on P27 payment system to improve domestic and cross-border payment processes.
- Accenture and Capgemini recognized as leaders in the ISG Provider Lens report.
- None.
Traditional banks are modernizing internal and customer-facing technologies to compete with new payment, investment and lending alternatives, ISG Provider Lens™ report says
The 2022 ISG Provider Lens™ Digital Banking Services report for the Nordics finds that digitalization is a top priority for banks in the region, with some focusing on improving their current products and services while others also seeking growth through new offerings and adjacent businesses. As in other regions, the current shake-up in Nordic banking was caused in part by changes in consumer behavior during the COVID-19 pandemic and in part by FinTech startups introducing new kinds of products.
“Technology innovation is empowering banking customers and opening doors to new competition, business models and revenue opportunities for traditional banks,” said
Consumers have become used to modern digital applications that offer quick, efficient and seamless user experiences and now expect the same in banking, the report says. This has led banks to both accelerate the digitalization of outward-facing elements, such as products and services, and simplify underlying processes. These efforts include adoption of new technologies, such as AI, blockchain, natural-language processing (NLP), intelligent automation and analytics, and the introduction of open banking frameworks that allow innovation through APIs.
Traditional banks in the Nordics, which are more profitable than most of their European counterparts, now face competition from new, digital rivals offering alternatives in areas including consumer loans, mortgages, credit cards and brokerage investments, ISG says. Payment ecosystems are also being disrupted, and major Nordic banks are working together to modernize in this area by developing P27, a system for efficient, real-time domestic and cross-border payments in the Nordics.
“Banks in the Nordics need to attract new users to their payment platforms and credit cards if they want to compete with FinTech startups,” said
The report also examines a wide range of other trends in the Nordic banking industry, including regulatory changes in
The 2022 ISG Provider Lens™ Digital Banking Services report for the Nordics evaluates the capabilities of 22 providers across four quadrants: Core Modernization and Integration Services, Technology Transformational Services for Digital Banking, Banking Governance, Risk and Compliance Services, and Payment and Card Processing Services.
The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, TCS and Tietoevry as Leaders in all four quadrants. It names Deloitte and LTI as Leaders in two quadrants each.
In addition,
A customized version of the report is available from Capgemini.
The 2022 ISG Provider Lens™ Digital Banking Services report for the Nordics is available to subscribers or for one-time purchase on this webpage.
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
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