Summary
A new study from Tietoevry Banking predicts that European banks will accelerate outsourcing in response to a rapidly changing end-user payment landscape. Digital wallets are expected to account for one in three online transactions by 2023, while cash transactions continue to decrease, with the Nordic countries leading the way.
End-users are changing their payment patterns around digital solutions, while the competitive landscape is also being transformed. Traditional banks are being challenged by non-bank financial institutions (NBFIs), FinTechs, BigTech players, and digital start-up banks. In response to these challenges, banks are now attempting to optimise their business models to improve margins, while also driving innovation and improving customer service.
The survey of senior decision-makers in more than 65 European banks, found that almost half of the participants (51.5%) were looking to move at least part of their card operations to Software as a Service (SaaS) in the next two years. Looking out over a three-to-five-year timeframe, a further 21.2% of respondents said they would be outsourcing some card operations, meaning that almost three-quarters (72.7%) of respondents said they intended to outsource.
Links: https://www.paymentscardsandmobile.com/75-of-european-banks-to-move-parts-of-payments-value-chain-to-saas/
https://www.paymentscardsandmobile.com/research/saas-the-future-of-payments-outsourcing/?utm_source=Home+Page&utm_medium=HPO+Box&utm_campaign=Tieto+Saas