A Survey of Retail Banking Channel Systems in North America: Omnichannel Emerges

by Bob Meara, February 7, 2017
Industry Trends
North America

Abstract

In a marked shift from Celent’s three previous biennial surveys, improving sales results is no longer job number one. Surveyed North American financial institutions now solidly identify improving customer relationships as their top retail banking strategic priority.

Celent has released a new report titled A Survey of Retail Banking Channel Systems in North America: Omnichannel Emerges. The report was written by Bob Meara, a Senior Analyst with Celent’s Banking practice.

Improving customer relationships is now job number one. In a marked shift from Celent’s three previous biennial surveys, improving sales results is no longer the priority. After surveying 112 top North American financial institutions, the results solidly identify improving customer relationships as their top retail banking strategic priority.

Spending priorities since 2010 have steadily shifted from physical to digital channels. Mobile is now broadly the highest channel priority among the majority of institutions. Moreover, improving platform capabilities is the most important technology initiative supporting banks’ strategic priorities.

No longer just a self-service delivery channel, digital is becoming a primary engagement mechanism for both self-service and assisted / full-service interactions. As this sinks in, institutions will invest in channel platform consolidation, beginning with the digital channel, already underway.

While conceding the importance of omnichannel delivery to deliver key strategic priorities (4.1 on a 5.0 importance scale), fully half of surveyed institutions have not begun substantive efforts. Roughly half of institutions have a person or team charged with its realization. Just one in ten surveyed institutions are executing a strategy.

“Mobile banking platform competitiveness is now most every institution’s top technology priority — and rightly so. This is evident in the pace of new mobile banking capabilities being introduced,” commented Meara.  

“But, most every institution’s number two technology priority, omnichannel delivery, has not yet been met with the activity it merits. Fully half of surveyed institutions don’t have an individual or group tasked with omnichannel delivery and have no strategy yet in place to bring it about,” he added.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

It’s All About the Customer

3

 

Strategic Priorities

3

 

Technology Priorities

5

 

How Channel Platforms Are Changing

7

Branch and ATM Channel Systems

9

 

Current State

10

 

Looking Ahead

14

Digital Channel Systems

18

 

Online Banking Platforms

20

 

Mobile Banking Platforms

21

 

Digital Customer Acquisition

27

Omnichannel Delivery

29

 

Omnichannel Readiness

32

 

Technology Path Forward

34

Recommendations

38

Appendix I: Research Methodology

39

Appendix II: Technology Adoption Detail

41

 

Online Channel Capabilities

43

 

Mobile Customer Authentication Mechanisms

48

 

Mobile Transaction Capabilities

51

 

Mobile Engagement Capabilities

55

 

Branch Channel Technology

59

 

ATM Systems

65

Leveraging Celent’s Expertise

68

 

Support for Financial Institutions

68

 

Support for Vendors

68

Related Celent Research

69

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