At the beginning of 2009, Gartner foresaw that banking and investment services firms would have to strike a balance between cost optimization and innovation; our 2009 research agenda addressed that divide. Similarly, at the start of 2010, our new research agenda will provide the insight and guidance to help firms manage the demands from competing economic views and business models. IT leaders at financial firms must decide how to support possible future scenarios and management dilemmas such as:
Operational efficiency versus business transformation Possible scenarios such as a slow recovery in established economies (with bankers' bonuses as a leading indicator) versus a double-dip (when the fiscal stimulus ends and cuts start to hurt) versus a faster recovery in emerging economies The continuing domination of the industry's old guard versus the surge of new entrants Business as usual versus the "new normal" Short-term tactics versus long-term strategy Throughout 2010, we'll publish reports, conduct surveys and generate research that addresses all of these issues, and discuss how they affect the IT decisions that IT leaders must make. 
Gartner's 2010 Banking and Investment Services Agenda Our 2010 agenda is based on the overall theme of industry transformation and five Core Topics, each of which align to a number of Key Issues. The five Core Topics are:
Customer Acquisition and Retention Risk Management and Regulatory Governance Payments Core Applications Bank of the Future Achieving the level of agility and capability to support multiple future scenarios is a tall order. That's why one of the innovations we're adding to the agenda is to integrate some of the workflow, vendor decisions and "key initiatives" undertaken by analysts outside the banking team in our core (horizontal) research. We will also publish our predictions and Hype Cycles for several Core Topics.
Core Topic: Customer Acquisition and Retention Background and Context of the Core Topic This Core Topic covers what the industry used to categorize as the "front office." However, that label was itself symptomatic of a failure to be truly customer-centric. That failing is more acute than ever as firms focused in 2009 on cutting expenditures and raising the efficiency of internal operations, leading them to neglect the customer experience. Here are the Key Issues for 2010 that will drive our research for customer acquisition and retention:
How do I improve customer acquisition and retention? How do I improve customer experience? How do I enhance the development and integration of channels?
To underscore the lack of improvement in the customer experience (apart from the novelty of the technology and informal language), a banker from 1910 would recognize much of what is presented in a typical online banking site — a range of products and list of transactions as supplied by the bank, not as required by the customer. Our research will explain how firms can change that by understanding customer needs and goals and responding profitably to those demands.
Summary of Planned Research There will be two main strands to our research for this Core Topic:
Summary of Relevant Published Research
Core Topic: Risk Management and Regulatory Governance Background and Context of the Core Topic Risk management and regulatory compliance are the key drivers for IT spending within the banking and investment services industry. Since the global financial crisis, governments have urged more regulations to improve the governance of firms, and to better manage the operating risk associated with lending and trading practices. In particular, spending on risk management software is likely to increase in importance, and banks will be asked to replace, amend or augment the systems already in place. Here are the Key Issues for 2010 that will drive our research for risk management and regulatory governance:
How do I improve risk management and regulatory governance? How do I address the current and future regulatory environment impacting my business? How do I improve external and internal risk and regulatory reporting? How do I improve risk management capabilities for my business?
Business requirements for transparency and customer service will remain primary drivers for creating an agile and responsive risk management strategy. Those same capabilities must also be leveraged to prepare for and respond to an evolving regimen of new financial regulations. That will require: (1) a more holistic and integrated approach to managing risk exposures and their interdependencies across all risk types (credit, market and operational), and (2) the tighter alignment of risk management decisions with corporate performance objectives. The overall risk management strategy and its execution will determine the IT architecture and software required for implementation.
Summary of Planned Research There will be two main strands to our research for this Core Topic:
Summary of Relevant Published Research
Background and Context of the Core Topic Payment operations and related services (such as cash management and trade finance) are part of the "back-to-basics" strategy of many banks. Banks must strengthen the integration between payment systems and cash management services, and also ensure that payment systems contribute better to risk management. Payment solutions are also critical tools for banks to rebuild consumer trust as a whole. Like the corporate side, liquidity management is a very important component of the retail payment proposition because consumers want to gain more control over their spending activities. Here are the Key Issues for 2010 that will drive our research for payments:
How do I improve my businesses payment capabilities? How do I analyze, plan and manage the modernization of my payment systems? How do I analyze and select vendors for the modernization of my payment systems?
Payment products and services have become more-strategic components of the banking relationship for consumers, merchants and corporate customers. Innovations in payment systems and related account services will be critical to support retail as well as corporate payment operations. Moreover, new regulatory frameworks in some markets, such as the Payment Services Directive (PSD) in Europe, lead to further investment for payment systems.
Summary of Planned Research There will be two main strands to our research for this Core Topic:
Summary of Relevant Published Research
Core Topic: Core Applications Background and Context of the Core Topic With many software projects and upgrades delayed in 2009, there is a backlog of work to be done in 2010. Many banks have continued transformational core application projects despite the financial crisis. Core application modernization projects are large-scale, long-term efforts that, once approved by the board of directors, are usually continued despite cyclical economic conditions. However, this modernization is imperative for agility, transparency and cost-efficiency. Here are the Key Issues for 2010 that will drive our research for core applications:
How should I develop the business case and project scoping for core application modernization? How should I approach vendor selection? What are the best practices for project implementations? How do I select the most appropriate delivery model?
Recent Gartner surveys have shown that back-office and core application IT spending has experienced more severe cuts than other areas of banking technology. This is an indication that some banks have taken a "hibernate through the crisis" approach. This cannot be sustained and will eventually result in decline. Core application modernization — for institutional asset management systems, lending systems, retail core systems, and treasury and trading systems — is imperative for agility, transparency and cost-efficiency.
Summary of Planned Research There will be five main strands to our research for this Core Topic:
Institutional asset management system modernization:
Lending system modernization:
Retail core system modernization:
Treasury and trading system modernization:
Application management and delivery:
Business case and alignment (including utilities and data management) Service-oriented architecture (SOA)/event-driven architecture (EDA)/services hubs in banking and investment services (including industry frameworks) Hub development (including business services clouds) Sourcing models Emerging technologies
Summary of Relevant Published Research
Core Topic: Bank of the Future Background and Context of the Core Topic Ever since the onset of the financial crisis, bank executives have had to reconsider their business and IT plans more carefully. CEOs have revealed new plans for restructuring their banks and operations to face the realities of a recessionary period, reduced liquidity and ravaged balance sheets. The models of "back to basics" or "one customer — one bank" have been championed as all-encompassing themes on which to base transformational initiatives. Here are the Key Issues for 2010 that will drive our research for the bank of the future:
How will the bank of the future evolve? What are the critical components and influencers of the bank of the future? How will current financial services firms transform themselves to become the banks of the future?
An overly cautious approach at many banks means that their visions for "transformation" will fail to create the strategic change needed in the industry, and so miss their objectives to reach new markets, build new business models and avoid disruption. Successful transformation will need radical restructuring of organizations, processes, customer service and business models.
Summary of Planned Research There will be three main strands to our research for this Core Topic:
Summary of Relevant Published Research
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