While banks in the Nordic region are ahead of the curve in adopting new technologies, some large banks are running legacy ‘spaghetti’ IT systems after acquiring competitors, according to a new report published by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens Banking Industry Ecosystem Report for the Nordics finds banks in the region looking to technology service providers to help them manage and consolidate multiple core IT systems in a cost-effective manner.
“Untangling these legacy ‘spaghetti’ systems will be a significant challenge for several large banks in the Nordics,” said Jan Erik Aase, Director and Global Leader, ISG Provider Lens Research. “This creates significant opportunities for technology service providers that understand the local market and can consolidate multiple banking platforms efficiently and quickly.”
The report also sees significant interest among Nordic banks in new technologies to improve customer experience, as the region aims to become the world’s first cashless society. Customer experience has become a top priority for many banks, as switching costs for customers plummet, millennial buying power soars and non-traditional banking alternatives proliferate.
The report also finds strong growth in contactless payments in the region this year, driven by the COVID-19 pandemic. As they update their systems, many Nordic banks prefer local service providers that understand regional market dynamics and cultural changes.
