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The Forrester Wave™: Digital Banking Engagement Platforms, Q3 2017 Eleven Off-The-Shelf Solutions Point To The Future Of Digital Banking by Jost HoppermannJuly 11, 2017 FOR APPLICATION DEVELOPMENT & DELIVERY PROFESSIONALS FORRESTER.COM Key Takeaways Backbase, EdgeVerve, And Temenos Lead The Pack Forrester’s research uncovered a market in which Backbase, EdgeVerve, and Temenos lead the pack. Finastra, TCS, Tagit, NETinfo, and Intellect Design Arena offer competitive options. Intelligent Environments, Sopra Banking Software, and CR2 offer choice, but not for all requirements scenarios. AD&D Pros Are Looking For Agile Off-The-Shelf Digital Engagement Solutions The DBEP market is growing because more AD&D professionals see these solutions as a way to meet changing customer requirements effectively and efficiently. This is in large part because AD&D pros are increasingly accepting the need to effectively deliver broad, rich channel-related business capabilities. A Few Key Differentiators Help AD&D Pros Identify A Well-Suited DBEP The key capabilities that differentiate solutions include the breadth and depth of support for retail, corporate, and private banking, as well as the analytics available, an agile apps builder, and their architecture. Why Read This Report In our 35-criteria evaluation of digital banking engagement platform (DBEP) providers, we identified the 11 most significant vendors — Backbase, CR2, EdgeVerve, Finastra (formerly Misys), Intellect Design Arena, Intelligent Environments, NETinfo, Sopra Banking Software, Tagit, Tata Consultancy Services (TCS), and Temenos — and researched, analyzed, and scored them. This report shows how each provider measures up and helps application development and delivery (AD&D) professionals make the right choice. 23513 © 2017 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester ® , Technographics ® , Forrester Wave, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Unauthorized copying or distributing is a violation of copyright law.
[email protected] or +1 866-367-7378 Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA +1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com Table Of Contents True Digital Banking Requires More Than Omnichannel Solutions Digital Banking Engagement Platforms Emerge As The Engine For Customer Experience Digital Banking Engagement Platforms Evaluation Overview Evaluated Vendors And Inclusion Criteria Vendor Profiles LeadersStrong PerformersContenders Supplemental Material Related Research Documents The Forrester Wave™: Omnichannel Banking Solutions, Q3 2015 An Introduction To Digital Core Banking Vendor Landscape: Omnichannel Banking Solutions FOR APPLICATION DEVELOPMENT & DELIVERY PROFESSIONALS The Forrester Wave™: Digital Banking Engagement Platforms, Q3 2017 Eleven Off-The-Shelf Solutions Point To The Future Of Digital Banking by Jost Hoppermannwith Christopher Andrews, Luis Deya, and Andrew ReeseJuly 11, 2017 FOR APPLICATION DEVELOPMENT & DELIVERY PROFESSIONALS The Forrester Wave™: Digital Banking Engagement Platforms, Q3 2017 July 11, 2017 © 2017 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.
[email protected] or +1 866-367-7378 2 Eleven Off-The-Shelf Solutions Point To The Future Of Digital Banking True Digital Banking Requires More Than Omnichannel Solutions Rapidly shifting customer requirements create a never-ending stream of challenges for banks and their AD&D teams seeking to execute on digital transformation. Delivering a great customer experience (CX) is an appropriate choice of strategy for banks that want to remain competitive, and many make it a priority for innovation investment as a result. 1 But to deliver on CX, banks face a series of decisions about integration that affect all other aspects of their business: Any planned improvement of CX also has to take into consideration existing application landscapes, branch strategies, mobile solutions, regulatory requirements, and a host of other issues.For years, banks’ AD&D teams considered channels — particularly cross-channel/omnichannel banking — as the primary strategy for delivering great CX. More recently, they have recognized the need for broader solutions that extend well beyond support for multiple channels, as well as for complementary capabilities, such as data management, analytics, and seamless end-to-end processing, that, together, deliver on the promise of true digital banking (see Figure 1). 2 FIGURE 1 The Top Nine Initial Focal Points Of Digital Transformation Go Beyond Omnichannel Solutions “Which will be the top three to five initial focal points of the transformation of your landscape of business applications?” 18%19%24%24%25%25%39%52%64% Regulatory compliance and risk managementBranch (advisory, sales, teller)Core bankingCustomer relationship managementCentral customer/party data managementMobile bankingBuilding the architecture/application infrastructuresupporting the transformation of the apps landscape Analytics/business intelligenceOmnichannel/cross-channel solutionsBase: 107 global financial services decision makersSource: Forrester’s Q3 2016 Global Financial Services Architecture Online Survey FOR APPLICATION DEVELOPMENT & DELIVERY PROFESSIONALS The Forrester Wave™: Digital Banking Engagement Platforms, Q3 2017 July 11, 2017 © 2017 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.
[email protected] or +1 866-367-7378 3 Eleven Off-The-Shelf Solutions Point To The Future Of Digital Banking Digital Banking Engagement Platforms Emerge As The Engine For Customer Experience Cross-channel/omnichannel banking has become highly attractive for business software vendors: Dozens, if not hundreds, of players now compete in a market worth billions of dollars worldwide. Vendors from the mobile banking, case management, and web content management segments have repositioned their solutions — through product enhancements or merely marketing — to get their piece of the omnichannel pie.In parallel, however, advanced banks and software vendors have started to work with a concept that denotes the next generation of omnichannel banking solutions. Forrester defines a digital banking engagement platform (DBEP) as: “An advanced cross-channel/omnichannel banking solution that enables an integrated, seamless, and comprehensive customer and employee experience across touchpoints. Typical functionality includes agile support for banking and channel-specific business requirements, analytics, digital sales and marketing, and a single view of customers, products, and services.” Banks and their AD&D teams show increasing interest in off-the-shelf DBEPs to enable them to serve their customers more effectively and efficiently and drive top-line growth. 3 With an advanced DBEP, AD&D teams can: › Deliver new banking capabilities rapidly across channels. Banks can quickly roll out off-the-shelf retail/consumer banking, corporate/commercial/SME banking, as well as private banking/ wealth management in a first phase of deployment. 4 In a second phase, AD&D teams can use built-in tools to extend and supplement these with other capabilities, such as built-in srcination, onboarding, and collection. › Support multiple channels out of the box. AD&D teams can use a similar phased approach to roll out screen designs and logic for various channels. More advanced DBEPs can offer operational benefits, such as the ability to push new marketing content to predefined screen areas or efficiently change screen designs across all supported channels. › Drive revenue and improve automation. Built-in or preintegrated analytics help to both refine the customer experience and cross-sell or upsell. Advanced DBEPs are starting to offer artificial intelligence (AI) components in areas, such as machine learning, chatbots, and robots, that help improve intelligence about customers and increase operational efficiencies. We can expect even more capabilities within future releases. Digital Banking Engagement Platforms Evaluation Overview To assess the state of the DBEP market and see how the vendors stack up, Forrester evaluated the strengths and weaknesses of top DBEP vendors in the space. After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria. 5 We evaluated vendors against 35 criteria, which we grouped into three high-level buckets:
