The Banking dilemma: Efficient operations while generating growth with new digital banking services. How can Tietoevry Banking help?
The conversations I and my colleagues have had with our customers in the banking industry for the past 1,5 years, have brought out common needs in the aftermath of the pandemic.
Let me present the most common needs and explain from my perspective how we can help. We, Tietoevry Banking, are here to help Nordic banks to free up their resources and costs to modernize and digitalize value chains and processes for better and more efficient banking. This, of course, is a statement that can be said by many vendors so what really sets us apart?
Innovation is at the top of the agenda for most banking customers I talk to. Many of them are seeking help to embrace innovation and build and run a robust foundation for digital banking services while staying competitive and attracting and retaining customers.
Furthermore, the banking customers’ satisfaction seems to be dropping especially in the corporate and SME segments, also shown by recent EPSI studies in Norway and Finland.
We have the breadth and depth to support banks in the most critical areas of banking not only in the Nordics, but also globally – an asset that a few vendors have. At least, that is what many customers tell us when they realize our broad offering and extensive domain expertise. We have market-leading software and services solutions within many areas such as Cards, Payments, Core, Lending, Wealth and Financial crime.
All our software banking products are uniquely positioned in their respective domains in the Nordics and deployable as SaaS plus have an elevated level of sophisticated localization layers and interfaces for the Nordic markets. The last thing is what really differentiates us from others.
The wealth and savings market has exploded, and people are more active than ever while lending is driven more by efficiency and compliance.
Our strength as a digital banking partner is that we are the market leader in both areas, serving more than 80 customers in the Nordics and beyond. In the capital markets area, we modernize and help to set up the foundation for digitalization and future growth with our leading savings and wealth management platform. It is a suite of software products and product components for securities trading, fund savings, pension savings and other means.
In lending, we have a modern solution to manage the complete lending process, which simplifies the entire origination and life-cycle process for mortgages, unsecured loans, and consumer credits. The fully automated solution saves time and resources, and ensures smooth customer journeys, freeing time for your core business.
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I have also noticed that many European banks have set up aggressive targets from both earnings and cost reduction perspective. However, as BearingPoint's Banking KPI Study 2021 revealed, only a few of out of more than 100 benchmarked European banks manage to sustain their cost income ratio under 55%. The majority were laggards, with cost-income ratios exceeding 55%.
This is interesting since we provide end-to-end banking to more than 100 Nordic banks powering some of the most digitalized and cost-efficient banks in Europe, with a cost income ratio below 40%.
We do this through a unique delivery model that goes beyond traditional SaaS – by taking end-to end responsibility for running the banks’ IT solutions including compliance and security. Our current volumes and scale allow us to provide superior quality, security, and compliance efficiently and at a lower cost, freeing up resources for our customers.
Our deep industry knowledge and strong portfolio within many different domains was further confirmed in a newly published report by Industry analyst firm ISG. Tietoevry was positioned as a leader in all four areas of the ISG Provider Lens Digital Banking Services 2021 Report for the Nordics:
Download the ISG Digital Banking Services report for the Nordics
Now, it is time to wrap up. I feel that in general there is a lot for every bank and financial institution to solve, but most importantly, the banking solutions are there.
We are here to help and will do that with a new focus. Tietoevry just recently launched six new specialized businesses with distinct focus and market position, and Tietoevry Banking provides services dedicated to banks and financial institutions.
We believe that this updated ambition will reassure our banking customers that we are making long-term investments in key areas to be able to offer the best software and platform services today and tomorrow. We will make sure that new technological advances are incorporated in our product development and use the benefits of AI, data and analytics while staying one step ahead of regulations. So, compliance and security remain built in our software products.
Also, we feel confident that our focus will help us even better to keep and attract the best experts within banking and financial services in the Nordics and globally. Last year, we recruited more than 600 new experts, from payments and compliance to lending and wealth management in our banking business despite the tough competition.
Are you ready to grow with us? Get in touch!
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Helge has an extensive background in banking and IT including operative responsibilities from delivering services in Payments, Cards and Core banking. In his current position, Helge engages in strategic discussions with banks in the Nordic region on how to modernize banks' IT landscape and improve operational efficiency.