UK banks are modernizing to meet regulatory and market demands

UK banks are modernizing to meet regulatory and market demands

LONDON–(BUSINESS WIRE)–UK banks are undergoing large-scale technology transformations in response to changing regulations, changing customer expectations and the emergence of new innovations and competitors, according to a new report from research released today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory company.

The 2022 ISG Provider Lens™ Digital Banking Services report for the UK reveals that banks need to do business in new ways as more consumers turn to online and mobile forms of banking, particularly at following the COVID-19 pandemic. Growing competition from FinTech startups and other non-banking alternatives offering retail banking, lending, integrated financing offerings, and corporate actions has also made digital transformation more imperative.

“The continuing wave of disruption in the banking sector, coupled with changing UK banking regulations, has paved the way for major modernization projects across national and global banks in the UK,” said Owen Wheatley, partner. principal, banking and financial services at ISG. . “Legacy core banking platforms need to evolve and transform quickly.”

To meet new market demands and new legal requirements, UK banks are increasingly taking advantage of new technologies, including AI, machine learning, robotic process automation (RPA), natural language processing (NLP), intelligent automation and analytics, explains ISG. These tools offer features that benefit both internal operations and the customer experience.

The need to comply with new regulations is also pushing UK banks to modernize their systems and introduce new features. Among other concerns, banks must implement solutions to comply with Basel 3.1 regulations on capital and risk frameworks, new rules on operational resilience against future events like the pandemic and the Services Directive. Payment Framework 2 (PSD2), covering customer security and API integration via open banking frameworks. Banks must also comply with stricter rules on detecting and reporting financial crime and money laundering, a growing concern as geopolitical issues generate more international sanctions.

UK banks are updating their technology around payments and card processing to meet consumer demands for new features that give them more options, the report says. Real-time payments, integrated finance (buy now, pay later), digitized cards and payment as a service, and greater monetization of payments data, require the transformation of banking platforms traditional.

“Non-bank players are a game-changer for many consumers,” said Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research. “Service providers can help traditional banks update their technology to compete and enter new segments.”

The report also explores a range of other issues facing banks in the UK, including the emergence of digital currencies and cryptocurrencies and the role of banks in funding and facilitating transitions to net-zero emissions. .

The ISG Provider Lens™ Digital Banking Services 2022 report for the UK assesses the capabilities of 26 providers in four quadrants: core modernization and onboarding services, technology transformation services for digital banking, banking governance, risk and compliance management, and payment and card processing services. .

The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, TCS and Wipro as leaders in all four quadrants. It names Deloitte as a leader in three quadrants and Atos, IBM and LTI as leaders in one quadrant each.

Additionally, LTI is designated as a rising star – a company with a “promising portfolio” and “high future potential” as defined by ISG – in three quadrants. The FIS is named a rising star in two quadrants.

A customized version of the report is available from Capgemini.

The ISG Provider Lens™ Digital Banking Services 2022 report for the UK is available for 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 assessment of its kind to combine data-driven empirical research and market analysis with the consulting team’s real-world experience and insights. world of ISG. Companies will find a wealth of detailed data and market analysis to help them select appropriate sourcing partners, while ISG advisors will use the reports to validate their own market knowledge and make recommendations to client companies. from ISG. The search currently covers providers offering their services worldwide, across Europe, as well as in the US, Canada, Brazil, UK, France, Benelux, Germany, Switzerland , Nordics, Australia and Singapore/Malaysia, with additional markets to be added. in the future. For more information on the ISG Provider Lens research, please visit this webpage.

A complementary research series, the ISG Provider Lens Archetype Reports, offers a one-of-a-kind assessment of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a global leader in technology research and consulting. A trusted business partner to more than 800 customers, including more than 75 of the world’s 100 largest enterprises, ISG is committed to helping enterprises, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The company specializes in digital transformation services, including automation, cloud, and data analytics; procurement advice; governance and risk management managed services; network operator services; design of strategy and operations; change management; market intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries – a global team known for its innovative thinking, market influence, deep expertise in industry and technology and its world-class expertise. research and analysis capabilities based on the most comprehensive market data in the industry. For more information, visit

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