Navigating the hype: Gartner® insights on digital banking transformation

5 min read

Riding the wave: Gartner insights on Hype CycleTM for digital transformation

In today's competitive landscape, digital transformation is no longer just an option for financial organizations, it is a necessity for their survival. Without a clear understanding of what digital transformation entails and without aligning their organization around a focused program, leaders cannot expect to achieve success in this rapidly evolving digital era.

Financial institutions across different regions and industries face unique challenges and opportunities. They have distinct business and technology priorities, varying levels of risk appetite and innovation drive, as well as different levels of IT and cultural maturity. Customer needs, competitor activities, fintech advancements, and regulatory impacts also vary greatly. When evaluating the impact of transformative digital technologies on their institutions, it is crucial for banking CIOs and CTOs to take into account all these factors.

Gartner in the Hype Cycle for Digital Banking Transformation 2023, urges CIOS to assess all the variables “when assessing the impact of transformative digital technologies on their institutions. Local context will be vital in explaining the real-world impact of these technologies both on the bank and its customers.


From hype to reality: What technologies are worth it in digital banking transformation 

We believe, Gartner in the Hype Cycle for Digital Banking Transformation, highlights the technologies that enable banks to adapt to changing customer demands and confront new competitors in the context of a highly regulated market.

Technology innovations are empowering bank competitors, influencing customer demand for products and services, and shaping regulators’ actions globally. Bank CIOs can use this research to spotlight innovations shaping their industry and prioritize their technology investment strategies accordingly.”

- Gartner, 2023

Our understanding is that Gartner underlines the primary areas of focus that are addressed in the report:

1. Open Banking, Embedded Finance, New Roles for Data and APIs

It is crucial for banking executives to recognize how these technologies are enabling new consumption and distribution models for banking products and services.

2. Core Technologies and the Cloud

Gartner highlights the impact of core banking and cloud technologies in enabling digital optimization and transformation.

3. Analytics and AI

Gartner explores some of the major drivers and use cases for data analytics as well as the potential of augmented and autonomous decision-making in banking operations.

4. Sustainable Finance and ESG

Gartner recognizes the increasing focus by bank's end-users, governments, regulators and the technology provider community on sustainable finance which is pivotal topic for the industry.


Invest in the right technology – Gartner sheds light on what technology to prioritize

Gartner emphasizes the importance of prioritizing these technologies for banks and financial institutions. These emerging technologies hold immense potential to revolutionize the banking industry.

In Gartner Hype Cycle for Digital Banking Transformation 2023, a total of 14 technologies have been identified as "transformative". Let's take a look at a few of these groundbreaking technologies:

1. Generative AI

Advances in AI, data analytics capabilities and expansion in flows of contextual data and other data-generating sources will influence how customers — whether human, corporation or machine — consume products in the future. These advances in contextual technologies will require providers to make a significant change to enable financial services products that sense and respond to their environments, and to the context and situation in which they are consumed.

2. Autoadapting

To stay ahead in the ever-evolving financial landscape, it is crucial for financial institutions to be proactive and continuously adapt to the latest technology. Autoadapting products provide a unique chance to enhance customer relevance and minimize the risk of customers switching to other financial service providers.

By embracing autoadapting, financial institutions can ensure they are always at the forefront of technological advancements, providing a seamless and efficient banking experience for their customers.

3. Autocomposing 

The creation of autocomposing products will be heavily dependent on the advancement of analytics capabilities and AI/machine learning (ML) modeling, which will serve as the foundation for developing these innovative products and services. With the rapid development of large language models and Generative AI, the progress of autocomposing products is expected to accelerate significantly.


Gartner, Hype Cycle for Digital Banking Transformation 2023, 20 July 2023, By Analyst: Alistair Newton

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and HYPE CYCLE is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.



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