ISG Provider Lens study: Banks in Switzerland broaden their view of platforms and partner relationships in order to continuously develop their business models
The majority of Swiss financial institutions are going through a far-reaching digital transformation in order to face up to new competitors and the demands of a young, digitally oriented clientele. That’s according to a new study released today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The study “2022 ISG Provider Lens Digital Banking Services report for Switzerland” concludes that the country’s established banks are increasingly having to compete with fintech startups and technology giants such as Google, Apple, Facebook and Amazon. While competitors are gaining market share by offering innovative lending, savings, investment and payment services, established banks are building digital frameworks to create new business models that will differentiate them in the marketplace.
“Swiss banks are expanding their reach and changing their service offerings to remain competitive,” said Owen Wheatley, ISG’s Lead Partner for Banking and Financial Services. “Being close to customers alone no longer gives them the really decisive market advantage. Rather, it’s about getting into a mode of permanent innovation in order to meet changing customer needs in a timely manner.”
For many years, most of the country’s established banks worked with the same large IT service providers. This pattern is now changing, ISG continues. Financial institutions are now also turning to fintechs, global technology companies and a much wider range of service providers than before. Switzerland is home to some of the leading providers of core banking platforms and the country’s banking sector already uses a wide range of technology platforms, including global systems and local implementations.
“Zurich has evolved into a digital banking hub,” says Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research. “Its vibrant startup scene supports the country’s banks’ digital transformation projects.”
As a rule, Swiss banks carry out modernization initiatives in stages. According to ISG, they rely on a modular approach. This can be seen, for example, in the fact that they work with new architectures such as microservices or use modules that are part of more comprehensive banking products. Smaller banks mostly use standardized platforms.
As banking regulatory guidelines evolve and European banking becomes more integrated, governance, risk compliance (GRC) is emerging as another area of innovation for Swiss banks, the report continues. Technologies such as integrated risk platforms or AI-supported tools for fraud analysis are gaining in importance. In addition, financial institutions are investing in payment and card processing platforms, where real-time payment options and the growing potential for data monetization are changing the competitive landscape. According to ISG, most of the banks’ payment initiatives aimed at this are currently in the proof-of-concept phase.
The report also looks at other technology trends in the Swiss banking sector, including the integration of old and new systems and the growing importance of Environmental, Social Governance (ESG) strategies.
The study “2022 ISG Provider Lens Digital Banking Services report for Switzerland evaluates the capabilities of 27 providers in four market segments. These are “Core Modernization and Integration Services”, “Technology Transformational Services for Digital Banking”, “Banking Governance, Risk and Compliance Services ” and “Payment and Card Processing Services”.
The study ranks Accenture, Capgemini, Cognizant, GFT, IBM, Infosys and TCS as leaders in all four market segments. Deloitte and Sopra Steria each receive this rating in three market segments, and Atos and EPAM Systems in two each. MSG is “Leader” in a segment.
In addition, EPAM Systems, HCLTech, Swisscom and Zühlke are each designated as “Rising Star” in two segments. According to ISG’s definition, these are companies with a promising portfolio and high future potential.
An edited version of the study is available for download from Capgemini.
The 2022 ISG Provider Lens Digital Banking Services report for Switzerland is available to subscribers and individual purchasers on this website.
About ISG Provider Lens
The ISG Provider Lens Quadrant series of studies is the only provider comparison of its kind that combines empirical, data-driven research and market analysis with real-world experiences and observations from ISG’s global consulting team. Companies receive a wealth of detailed data and market analyzes that make it easier for them to select suitable sourcing partners. In turn, ISG consultants use the reports to review their own knowledge of the market and to advise ISG business customers. The study is currently examining global providers, primarily in Europe and the USA, Canada, Brazil, the UK, France, Benelux, Germany, Switzerland, Scandinavia, Australia and Singapore/Malaysia. Other markets will be added in the future. Visit this website for more information on the ISG Provider Lens market research.
An accompanying series of studies, the ISG Provider Lens Archetype Reports, is the first of its kind to evaluate providers from the perspective of specific customer segments.
About Information Services Group (ISG)
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. As a trusted business partner to over 800 customers, including more than 75 of the world’s top 100 companies, ISG helps enterprises, public organizations, and service and technology providers achieve operational excellence and accelerate growth. The company’s focus is on services in the context of digital transformation, including automation, cloud and data analytics, sourcing consulting, managed governance and risk services, network operating company services, design of technology strategy and operations, change Management and market research and analysis in the fields of new technologies. Founded in 2006, ISG, based in Stamford, Connecticut, employs over 1,300 digital-savvy professionals and operates in more than 20 countries. ISG’s global team is known for its innovative thinking, valued market voice, deep industry and technology expertise, and world-leading market research and analysis resources powered by the industry’s most comprehensive market data. Visit www.isg-one.com for more information.
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Philipp Jaensch, ISG
+49 151 730 365 76
Matthias Longo, Palmer Hargreaves for ISG
+49 152 341 464 63