Juniper Research predicts that by 2021, nearly 3 billion users will be using retail banking services on smartphones, tablets, PCs and smartwatches, up 53% from 2017.
The new research titled “Retail Banking: Digital Transformation & Disruptor Opportunities 2017-2021” also predicts that usage will continue to rise as consumers increasingly opt for banks offering the convenience of rapid, multi-channel digital services. This means that banks will need to focus on providing a more frictionless digital experience to their customers, especially if they are to remain market leaders.
According to Juniper while traditional banks have so far remained a step behind in delivering innovation and maintaining their competitive edge against new Fintech players, the situation is gradually changing.
“Technology is currently the big differentiator for all types of banks; including traditional banks and the so-called challenger banks. Investments in banking technology reached record levels in 2016 and traditional banks are expected to focus on digital transformation initiatives”, added research author Nitin Bhas.
Juniper predicts that in 2017, big banks will acquire challenger players including tech-startups and digital-only banks, and this will further accelerate the rollout of traditional players’ digital strategy.
Juniper’s Digital Transformation in Banking Readiness Index analyzed leading global tier-1 banks to evaluate their digital transformation readiness scores and highlight their respective positioning within the digital innovation roadmap.
Its list of leading banks for digital transformation include Banco Santander, Bank of America, Barclays, BBVA, BNP Paribas, Citi, HSBC, JP Morgan Chase, RBS, Société Générale, UniCredit and Wells Fargo.
Juniper says these banks are progressing rapidly towards the final stages of digital transformation with heavy investments, have excellent digital portfolios, and are already witnessing significant cost savings.