- Digital account opening for personal banking globally edges closer to ubiquity, as now more than three quarters of personal accounts can be opened online.
- Mobile is now mainstream, with 50% of accounts of all types available for opening on mobile devices. Two years ago, mobile reached just half the accessibility of what was available through online desktop channels.
- Solving omni-channel is still a challenge for most, with slow progress implementing “save and return”. Just 28% of banks offer this key, yet complex, component of delivering a true omni-channel experience.
GENEVA, Switzerland – April 2, 2019 – Temenos (SIX: TEMN), the banking software company, today unveiled the findings of its 2019 Digital Sales in Banking Report.
The report, now in its fourth year, compares the digital account opening capabilities of 60 large and representative mid-size banks in North America, Europe and Australia, measuring both the breadth of offerings and the quality of the customer journey.
Banks Arriving at the Digital Promised Land
For the third year, the report includes its proprietary ‘Digital Sales Readiness Matrix’. Examining key touchpoints of the account opening journey at each bank, the matrix maps out which banks are lagging behind in their digital sales implementation, which have prioritized digital readiness, and which have reached the optimal ‘Digital Promised Land’. The matrix is the only tool of its kind to measure both the quality and the quantity of banks’ digital offerings.
In 2019, the majority of banks have made significant progress in digitalizing their retail product line, with 65% of digitally active large banks reaching the ‘Digital Promised Land’. This represents a significant shift from 2017, when the majority of banks were still categorized as ‘Legacy Lovers’ or ‘Under Achievers’. Notable is the large difference between digital sales capabilities for retail products versus business banking and wealth management offerings.
For the first time since the study’s inception, the largest US banks now lead the world in mobile enabled personal banking, at 75% of accounts, surpassing the perennial leader Australia. The study highlights the rapid progress made by the largest US banks as their long digital investments start to pay off, after lagging for several years. It also illustrates the competitive impact of their large investments.
Mid-Market Banks in the Midst of a Digital Identity Crisis
New to this year’s report is the Mid-Market Index, which focuses on the distinct differences between the largest, smallest, and mid-sized banking segments in the US market. The report exposes a mobile gap in the mid-market bracket, with both large and small banks outranking mid-market sized banks by 500%. Mid-sized banks (~$75B in assets) find themselves in a precarious situation with digital sales. Many of the banks operating in this segment maintain a more complex product set than their smaller competitors, yet lack the financial and IT resources of the larger banks in order to innovate and grow.
Derek Corcoran, Chief Experience Officer, Temenos said:
“Globally, banks that invested in digital transformation projects three to five years ago are beginning to see the fruits of their labor in the form of improved customer-facing digital capabilities hitting the market. With banks mostly solving only the basic requirements of digital account opening for personal banking, much opportunity still exists for banks to implement advanced retail features, as well as digital sales channels for wealth management and business banking. That’s where partnering with a technology provider like Temenos can really make a difference – our winning combination of packaged functionality with the most advanced cloud-native, cloud-agnostic technology will allow financial institutions to enter the ‘Digital Promised Land’, no matter what size they are. With Temenos Infinity, they can dramatically reduce the cost of deploying software, while gaining agility and accelerating the speed of innovation across business lines. Banks need to act now – the good news is the solutions are out there.”
The 2019 State of Digital Sales in Banking Report can be downloaded here.