- 71% of digital transformation decision makers say their customers want capabilities they can’t build into their existing infrastructure.
- 73% say their organization does not have enough staff to support a robust, CX-driven digital strategy.
Miami, March 8, 2023 /PR Newswire/ — novopayment, forester consultinga new research report released today sheds light on what is slowing digitization efforts at smaller banks and credit unions, and seeks to level the playing field for larger financial institutions by offering as-a-service of leaders adopting banking (BaaS) partnerships.
Report, “Nimble Bank Playbook for 2023contains the results of a survey of over 200 local and regional bank and credit union digital transformation decision makers. $10 billion assets under management. Historically, the size of smaller financial institutions has resulted in reputations for providing superior customer service and higher engagement, but larger firms are in both the battle to win and the battle to attract customers. inferior to banks. Shrinking talent pool— partly due to less robust digital products.
The survey found that leaders at smaller banks and credit unions said demand for digital services had increased over the past 24 months, with 80% expressing concerns about customer response and more than ever before. It shows that you are under pressure to catch up. Move to a bigger bank. In addition, 71% noted that their customers are looking for features that cannot be built into their existing infrastructure, which explains why their BaaS platform has seen an increase in partnerships with his providers. help.
Key findings: What are the barriers to digital initiatives?
People, process and technology challenges are slowing digital transformation efforts at smaller banks and credit unions.
- 73% say their organization does not have enough staff to support a robust, CX-driven digital strategy.
- Forty-five percent say their increasingly complex IT environment is hindering their implementation of BaaS solutions.
- 41% face regulatory and compliance burdens when pursuing their organization’s digital initiatives.
But leaders are embracing BaaS partnerships to overcome these challenges and level the playing field for large financial institutions. Closing the internal skills gap, predictability of costs, and a proven security record are important when choosing a BaaS partner.
- 88% believe bridging internal skill gaps is important for BaaS partnerships.
- 87% say partnerships play a key role in closing the gap in their digital initiatives.
- 80% are considering or already using third-party services and offer them via APIs.
- 67% use BaaS to embed banking services into other companies’ products.
Key findings: Why and how are leaders adopting BaaS partnerships?
Decision makers and leaders at smaller banks and credit unions see BaaS as a better fit than larger financial institutions.
- 90% of decision makers believe their smaller organizations can build and implement digital interface changes faster than larger national or global banks.
- 86% believe smaller organizations are more agile in the face of digital transformation.
We plan to partner with BaaS providers to implement their next-generation digital initiatives.
- 51% plan to pursue Integration with additional third-party providers.
- 50% will be implemented Open an account online.
- 49% plan to introduce credit decision.
- 49% plan to implement Creation of Greenfield Bank.
“Strategic partnerships are key to increasing the efficiency of our work, attracting new customers and better meeting their needs.” Josh Williams, EVP, Chief Banking Officer and Head of Partnerships at Seattle Bank, a digital-driven boutique bank. “For partnerships to be effective, smaller banks and credit unions need to deepen their understanding of the tech ecosystem, identify, evaluate and ultimately onboard various partners to stay competitive. It is imperative that we build the capability to provide the solutions needed for
“In today’s rapidly changing financial services landscape, customers are demanding capabilities that cannot be built into their existing infrastructure. and where BaaS partners can help bridge the gap between these: their own digital capabilities and the digital capabilities of larger banks,” said Rama, Chief Technology Officer at NovoPayment. says Iturarte. “Fortunately, smaller banks and credit unions are more agile and will benefit from his BaaS partnerships that provide the infrastructure they need to meet customer demands and remain competitive in the market. can do.”
To read the full survey results, please visit: novopayment.com/study-forrester-2023-nimble-bank-playbook.
methodology
NovoPayment commissioned Forrester Consulting to survey 204 digital transformation decision makers at regional banks, regional banks, and credit unions in the United States. $10 billion Examine your institution’s current and future digital initiatives by examining assets under management (AUM). All respondents identified themselves as C-suite, vice-president, or board-level, with 87% saying they are the ultimate decision-makers for digital initiatives. 81% of his respondents were retail banks and 19% were credit unions.custom survey September 2022 completed with November 2022.
About NovoPayment
novopaymentCategory Leader in Banking as a Service (BaaS) platform will enable digital financial and trading services to support a variety of use cases. The company’s bank-level solutions use APIs and other flexible delivery models to reach banks, financial institutions, merchants, networks, marketplaces, neobanksand other financial services providers are leveraging existing systems to create new deposits, transaction streams and customer experiences.
For more information, see: novopayment.com and developer.novopayment.com.
About Forrester Consulting
Forrester (Nasdaq: FORR) provides independent, objective, research-based consulting to help leaders achieve key transformational outcomes. Forrester’s experienced consultants, backed by customer-focused research, partner with leaders, tailor to their diverse needs, and execute on priorities using a unique engagement model that ensures lasting impact. increase.
For more information, see: forrester.com/consulting.
SOURCE Novopayment
