PLANO, TX – April 19, 2016 – NTT DATA, Inc., a leading business and IT services provider, today released new market research revealing 47 percent of U.S. consumers would consider Target or Walmart as a banking alternative.

In January 2016, NTT DATA Consulting, the new industry-centric, business and technology consulting approach from NTT DATA, surveyed more than 1,000 U.S. consumers and more than 100 U.S. bankers to investigate core deposit system modernization efforts at leading U.S. banks and the rising threat of consumers looking for banking alternatives.

“Modernizing core deposit systems should be a top priority for banks in 2016.  This effort will enable banks to satisfy rising consumer expectations, achieve a myriad of operational efficiencies and improve their time-to-market for innovation products.” said Peter Olynick, senior practice lead, Retail Banking, NTT DATA Consulting, Inc. “Antiquated legacy systems are hindering the banks’ ability to pursue growth opportunities and improve customer experience. Our study found one in three consumers would select a new bank if it could offer more innovative products with a user-friendly experience.”

Additional findings include:

  • Customer loyalty is decreasing, leaving a threat of an exodus
    • 23 percent of consumers would consider leaving their bank for a more modern alternative
    • 1 in 3 consumers would leave their bank for a better online and mobile experience
    • If a large retailer such as Target or Walmart offered banking, 47 percent of U.S. consumers would consider it as an alternative
    • 71 percent believe that their bank could do a better job of supporting their banking needs
  • Banks want to modernize, but struggle to see the path
    • 81 percent of bankers expect to maintain or increase investments in sustaining current core deposit systems
    • 78 percent of banker IT budgets are spent on maintaining legacy core deposit systems
    • Only four percent of banks planning to replace existing core deposit systems in the next three years
  • Banks see major business benefits from investing in a new core deposit system
    • New products/innovation - 53 percent
    • Increase in customer experience - 48 percent
    • Improved agility to respond to business needs - 48 percent
    • Improvements in processes within the business - 43 percent

“This study brought significant insight into the current and upcoming banking landscape in terms of technological solutions,” said Tom Mataconis, senior vice president, NTT DATA Consulting, Inc. “Among the findings, it was shown that 70 percent of bankers do not feel their processes can quickly adapt to the changing market landscape. To keep pace, NTT DATA Consulting recommends building a roadmap for a bi-modal approach, which will organize and guide banks through integration while modernizing core technology infrastructure.”

The complete report of NTT DATA Consulting’s research will be published in June 2016. To request a copy, please visit http://americas.nttdata.com/Services/Services/Consulting/research.aspx.

Follow us on Twitter @NTTDConsulting for updates related to this new research using the hashtag #NTTDBanking.

Upcoming Events

NTT DATA Consulting will be discussing this research at the 2016 CEB Financial Services Technology Summit on Wednesday, April 20, 2016 at 1:15 p.m. in Boston, MA.

 

About NTT DATA Consulting

NTT DATA Consulting takes an industry-centric approach to business and technology consulting. We seamlessly integrate business strategies and enabling technology to help clients accelerate business-driven transformation and compete in the digital world. NTT DATA Consulting has the unique ability to create end-to-end solutions by tapping the entirety of NTT DATA’s global technology and business process capabilities. In financial services, our 1,000-plus business consultants and 4,000 technology experts work with 25 of the leading financial institutions in North America.  Visit www.nttdata.com/USconsulting to learn more.

About NTT DATA

NTT DATA is a leading business and IT services provider and global innovation partner with 80,000 professionals based in over 40 countries. NTT DATA emphasizes long-term commitment and combines global reach and local intimacy to provide premier professional services, including consulting, application services, business process and IT outsourcing, and cloud-based solutions. We’re part of NTT Group, one of the world’s largest technology services companies, generating more than $100 billion in annual revenues, and partner to 80% of the Fortune Global 100. Visit www.nttdata.com/americas to learn how our consultants, projects, managed services, and outsourcing engagements deliver value for a range of businesses and government agencies.

About NTT DATA Services

NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most. We deliver tangible business results by combining deep industry expertise with applied innovations in digital, cloud and automation across a comprehensive portfolio of consulting, application, infrastructure and business process services.

NTT DATA Services, headquartered in Plano, Texas, is a division of NTT DATA Corporation, a top 10 global business and IT services provider with 118,000+ professionals in more than 50 countries, and NTT Group, a partner to 88 percent of the Fortune Global 100.

Media Contacts

Latest News

NTT DATA Identified as a Leader in 2019 IoT in Digital Transformation NEAT Evaluation by NelsonHall

PLANO, TX – July 9, 2019 – NTT DATA has been named a Leader in the NelsonHall 2019 NEAT Report for IoT in Digital Transformation. The company achieved the “Leader” ranking in three capabilities: manufacturing, retail and supply chain.

READ MORE

NTT DATA and RESTEC Launch AW3D Full Global 3D Map with 2.5-meter Definition

Tokyo, July 1, 2019 – NTT DATA, a leading IT services provider, and Remote Sensing Technology Center of Japan (RESTEC), the heart of the remote sensing industry, announced today that they have begun selling AW3D Standard (2.5m resolution), a highly precise, pre-produced digital-elevation-model 3D map of the world. AW3D Standard, which first launched with five-meter resolution in 2014, is currently used in more than 115 countries.

READ MORE

NTT Security 2019 Risk:Value Report Asks Why Organizations Are at a Standstill with Cybersecurity Despite Recognizing the Scale of Cyber Threats

LONDON – June 26, 2019 – Global organizations have stalled in their progress towards cybersecurity best practice and are facing paralysis as cybercriminals become more advanced. This is the conclusion drawn from the findings of the 2019 Risk:Value report – ‘Destination standstill. Are you asleep at the wheel?’ – from NTT Security, the specialized security company and center of excellence in security for NTT Group.

READ MORE