The Importance of Modernization for Mid-Tier US Banks
Modern payment hubs are crucial to enhance service offerings, strengthen client relationships, and secure the market position in an increasingly competitive financial landscape. Find out more
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US mid-tier financial institutions will struggle to retain and attract clients without modernizing to offer automated payment solutions, transparent reporting, and better integration with client systems. Investing in payment modernization and crafting a comprehensive digital transformation plan should be the key focus on that caters specifically to the needs of business clients.
This white paper examines the critical importance of modernization for U.S. financial institutions in today’s evolving financial services landscape. Based on comprehensive research conducted by Datos Insights, including surveys of businesses and banking executives, this paper commissioned by Finastra offers valuable insights into the challenges and opportunities facing mid-tier financial institutions as they navigate the complex world of payment technologies and client expectations.
Key Takeaways:
- Urgent need for modernization: 96% of financial institutions are making significant investments in payment modernization.
- Aligned business client needs: 89% of businesses are actively investing in payment technologies.
- Fintech competition: 43% of businesses cite real-time payments as a primary reason for working with fintechs.
- Cross-border payment focus: 57% of businesses express interest in improved cross-border payment capabilities.
- ISO 20022 impact: 24% of businesses have already adopted ISO 20022, with an additional 36% planning to do so.
- Cloud adoption acceleration: 93% of financial institutions consider it important that their technology vendors offer cloud-native solutions.
US mid-tier financial institutions face increasing pressure from larger banks with substantial resources and agile fintech competitors. By forming strategic partnerships and embracing cloud-native solutions, financial institutions can enhance their service offerings, boost operational efficiency, and position themselves for long-term success. Choosing a reliable vendor partner to support them throughout this journey will help them achieve these objectives.
