Tag: APEX Matrix

Everest Group Study Analyzes Consumer-Facing Digital Investments of Leading Retail Banks across U.S. and Europe | Press Release

Customer-centric innovation is ‘do or die’ proposition for retail banks; Everest Group reveals what’s working and who’s winning from a digital strategy perspective.

Banks are aggressively investing in digital technology to boost customer loyalty and gain a competitive advantage. In which technology strategies are they investing, and what is paying off? Everest Group answers these questions in recently published research that identifies the digital banking leaders in the United States and Europe.

“Digital innovation and customer experience is the only way forward for retail banks—it is a matter of do or die,” said Jimit Arora, partner at Everest Group.  “They need to innovate consistently and add functionalities across the customer touchpoints to offer best-in-class user experience as well as defend their business against neobanks.

“At the same time, retail banks are facing increased pressure to invest across ‘run-the-business’ initiatives—updating outdated, legacy systems; implementing stronger cybersecurity; observing stringent compliance and reporting requirements; and operating an extensive branch network, just to name a few! This is why retail banks are aggressively investing in digital technology. They must leverage technology quickly and wisely, or they will be left behind.”

Using its proprietary Ability | Performance | Experience (APEX) Matrix™, Everest Group has analyzed the digital banking functionalities of 26 large retail banks in the United States and 18 large retail banks in Europe.

According to Everest Group, the current technology priorities for retail banks include:

  1. Introducing multiple value-added services across digital banking channels
  2. Offering advanced security and authentication functionalities
  3. Providing secure, convenient and fast payment solutions to customers
  4. Leveraging social media for efficient customer service and marketing
  5. Redesigning and creating smaller branches equipped with self-service technologies

“We use the APEX Matrix to assess the extent to which investments by retail banks in these digital functionalities are yielding business results,” said Sarah Burnett, vice president at Everest Group. “This assessment is particularly vital to the retail banking industry today, as competitors in a mature industry seek to differentiate themselves among the consumer base by leveraging digital technology. The APEX Matrix reveals what the leading banks are doing from a digital perspective, and what’s paying off. These reports also assist senior stakeholders to understand the difference in adoption of digital technologies across different geographies.”

The following institutions have been identified by Everest Group as Digital Banking Leaders in their respective geographies:

United States:

  • Bank of America
  • Capital One
  • Chase
  • Citi
  • PNC
  • Regions Bank
  • USAA
  • S. Bank
  • Wells Fargo

Europe:

  • Barclays
  • BBVA
  • HSBC Holdings
  • Lloyds
  • RBS
  • Santander

The complete results of this research are published in two reports available at everestgrp.com:

About Everest Group’s APEX Matrix™

The APEX Matrix is a first of its kind ‘open-source’ evaluation of the digital effectiveness of the largest retail banking operations. The research methodology for the APEX Matrix—designed to spotlight consumer engagement and experience—relies solely on publicly available information and takes into account only those aspects of digital functionality that a customer could evaluate.

The X-axis of the APEX Matrix measures digital functionality across mobility, social, online and branch/ATMs from the vantage point of a consumer. The Y-axis measures the business impact by assessing adoption levels, customer experience scores, brand perception and financial impact. Across the two axes, Everest Group evaluates more than 70 parameters to identify the leaders, innovators, optimizers and aspirants for digital banking capabilities.

Everest Group Identifies Pharmaceutical Firms Leading the Way in Digital Effectiveness | Press Release

Adoption of digital is creating a new pecking order of technology savvy life sciences firms led by Astra Zeneca, Johnson & Johnson, Novartis, Pfizer, Roche and Sanofi.

Fewer than 15 percent of all life sciences transactions signed in 2015 had an element of digital services in their scope; nevertheless, digital technologies are the pivotal driver for life sciences companies as they restructure to become leaner and pursue agility in operations to drive new product development, according to Everest Group, a consulting and research firm focused on strategic IT, business services and sourcing.

To illustrate this point, Everest Group profiled 15 global pharmaceutical companies regarding their digital functionality and business impact. In “Life Sciences IT Industry: An Assessment of the Market Opportunity and APEX MatrixAssessment,” Everest Group identifies Astra Zeneca, Johnson & Johnson, Novartis, Pfizer, Roche, and Sanofi as industry leaders.

This new research from Everest Group indicates that the key market trends driving digital adoption include the rising number of “born digital” healthcare consumers, the need for operational efficiencies and cost optimization, and the movement towards data-driven, personalized, evidence-based medicine.

The life sciences industry’s data-rich environment (including scientific, clinical and operational data) coupled with its many market challenges make analytics a key lever to provide real-time, actionable insights and improve operational efficiency. Analytics presents value in three key areas for life sciences organizations: cost reduction, top-line growth, and risk and compliance management.

Driven by the focus on analytics and infrastructure services, recent life sciences ITO deals focus on datacenter, end-user computing, and databases/middleware services, as well as application, development and maintenance (ADM) and enterprise resource planning (ERP).

“Most of the 2015 IT outsourcing contracts in the life sciences that did include digital services, did so as an add on to existing contracts, with a focus on remodeling existing ADM agreements,” said Jimit Arora, partner at Everest Group. “Digitally native contracts in life sciences are still a rarity, but we will see an increase in these contracts in the future. In fact, the adoption of digital is creating a new pecking order of technology savvy firms, with those that successfully use digital technology to both drive internal operations and customer-focused channels—i.e., digital for efficiency and digital for growth—leading the way.”

Other key findings:

  • Market imperatives to drive 12 percent CAGR growth till 2020. The life sciences industry is in a “recovery phase” as it grapples with a multitude of challenges that are stifling R&D efficiency, changing the portfolio mix and increasing M&A/restructuring. To address the challenges, market participants are adopting technology as a means to enable quicker product development, better consumer connections and significantly improved time-to-value.
  • Growth is a key driver of digital investment. While efficiency and enablement of digital are aspects gaining primacy, the life sciences industry is focused on driving growth via digital channels, consumer engagement, and healthcare ecosystem collaboration.
  • Analytics and cloud are aspects that will drive most digital investments in the short term. When it comes to enabling a cohesive digital strategy, organizations are going to extensively leverage hybrid cloud models and focus on analytics (both prescriptive and predictive) to get to outcomes quicker

*** Download Complimentary, Publication-Quality Graphics Here ***
High-resolution graphics illustrating key takeaways from this research can be included in news coverage, with attribution to Everest Group. Graphics include:

  • The changing value proposition in life sciences global services
  • On- and nearshore delivery on the rise in life sciences IT
  • IT opportunity in the life sciences industry
  • Digitization in life sciences IT contracts

Trekking New PEAKs in the BFSI Sector | Sherpas in Blue Shirts

With no rest for the weary, a wave of regulatory overhaul and technological disruptions made the first half of 2015 very busy for enterprises in the banking, financial services, and insurance (BFSI) sector. Indeed, rather than being an enabler of efficiencies and operations, technology is now the fundamental differentiator for banks to grow their revenue and increase market share.

To keep up with all the activity, Everest Group in the past six months published a number of research reports examining the health of the market, the service provider landscape, and the digital effectiveness of BFSI organizations.

Following are some key insights and highlights from our research.

  • Overall BFSI ITO sector
    • The global BFSI ITO market size was estimated to be US$110-130 billion in 2014
    • Increasing regulatory scrutiny placed higher cost pressures on BFSI buyers, leading to a reduction in the total ITO spend. This in turn resulted in a decline of 5 percent in the number of transactions, and a 43 percent decrease in total value of BFSI ITO contracts signed in 2014
  • Banking
    • Banking organizations globally are focusing on a triple mandate: run, manage, and change. This focus translates into efficiency, compliance, and transformation initiatives
    • Our ITO in Banking Annual Report: Riding the Digital Wave report found that investment in digital channels (mobile, online, and social), disruption in the payments landscape, and the emergence of small and medium enterprises (SMEs) as a focus segment have raised demand in retail banking, cards and payments, and the lending lines of business. Against the backdrop of banking market characteristics, the report also identifies key initiatives banks are undertaking to address the industry headwinds
    • Dell Services, HCL, IGATE, Infosys, and Virtusa were the 2015 Banking AO Market Star Performers in our ITO in Global Banking PEAK Matrix™ report: Rise of the Challengers, based on their Year-on-Year (YoY) movement in our annual assessmentBanking ITO PEAK Matrix 2015
    • Retail banks are making significant investments to stay relevant to digital natives and the millennial generation. A seamless transaction experience, stronger customer engagement through higher penetration of digital channels, posting of richer content, and larger breadth of value-added services are some of the key attributes of digital leaders in the retail banking space, per our first-ever APEX Matrix™ that assesses leading retail banks in the United States and United Kingdom on their digital functionality and the business impact it generates

So what is in store for the next few months? Lots! Our upcoming reports through the end of 2015 include:

  • Insurance – We’ll be exploring industry trends in our upcoming ITO annual report on the global insurance market (Life, P&C, and Re-insurance), and evaluating global insurance service providers in our global Insurance AO PEAK Matrix report
    • BFSI in Europe – Europe is driving the financial services market in terms of new deal signings. Our upcoming Europe-focused PEAK Matrix assessments on Banking and Capital markets in Europe and Insurance in Europe will explore the European service provider landscape
  • Digital PEAK Matrix assessments – Service providers’ offerings within the digital technologies umbrella are rapidly maturing. To cover the evolving excitement in the industry, we are significantly expanding our portfolio of published PEAK Matrix evaluations in 2015. New reports we will be publishing before the end of year are:
    • Mobility in banking
    • Mobility in insurance
    • Big data analytics in banking
    • Big data analytics in insurance

Everest Group’s goal is to help ensure enterprises and service providers achieve maximum success from their sourcing initiatives. Thus, we encourage you to reach out to us directly with your questions and comments.

Jimit Arora, VP and Global Head of IT Services Practice, [email protected]

Aaditya Jain, Senior Analyst, [email protected]

Archit Mishra, Senior Analyst, [email protected]

Ronak Doshi, Senior Analyst, [email protected]

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