New data reveals the present economic climate and talent management pose challenges to achieving sustainable banking for both challenger and traditional banks
WALTHAM, Mass., Oct. 24, 2023 /PRNewswire-PRWeb/ -- Today, Hexaware Mobiquity, a digital consultancy that designs and delivers innovative digital products and services for the world's leading brands, released the third part of its annual Global Benchmark for Sustainable Banking Report. Part three compares how challenger and traditional banks view the key trends, opportunities and challenges to achieving more sustainable banking operations. 600 C-suite banking executives across the United States, United Kingdom, the Netherlands and Australia were surveyed.
In recent years, both traditional and challenger banks have cited sustainability as a key concern at the board level. However, the focus has shifted this year to prioritize innovating digital technologies and hiring strategies to enable banks to keep up with increased ESG demands. In fact, both U.S. challenger and traditional banks claimed limited access to talent and expertise as their number one barrier to adopting more sustainable practices and behaviors this year. More specifically, challenger bank executives cite talent management as their top concern at the board level while traditional bank executives cite digital transformation.
Furthermore, the percentage of both US challenger and traditional banks reporting on sustainability challenges at the board level fell from nearly 95% in 2022, to just over 65% in 2023. ESG representation at the board level for both US challenger and traditional banks also dropped significantly from around 95% in 2022, to under 75% in 2023, and executives at both stated that overall sustainability is a far less important part of their business strategy this year.
"This year has presented the banking industry with tremendous challenges, leading to an industry-wide reprioritization of digital strategies to meet ESG goals," said Peter-Jan van de Venn, VP Global Digital Banking at Hexaware Mobiquity. "By aligning technology and business strategies with sustainability goals, challenger and traditional banks can tackle two problems at once, playing a pivotal role in fostering sustainable development, addressing global environmental challenges and driving sustainable practices that contribute to a greener future despite the current economic climate."
Additional Key Findings Include:
- The US is falling behind in taking steps to foster sustainable behaviors – globally, traditional banks are ahead or at the same level as challenger banks.
- Banks in all regions are most often developing digital applications for clients to be sustainable and digital solutions to create sustainable outcomes.
- Apart from traditional banks in the Netherlands, all banks are embracing emerging technologies such as Machine Learning, Artificial Intelligence, GenAI, cloud and data analytics to achieve greater sustainability.
- In 2022 traditional banks were engaging the most with Metaverse technologies – that interest has slowed down substantially in 2023 across all regions and was down nearly 30% among US challenger and traditional banks.
The full report is available at https://www.mobiquity.com/insights/challenger-vs-traditional-banks-2023.
To read more on Hexaware's ESG initiatives, visit https://hexaware.com/about-us/esg/. To learn more about how Hexaware Mobiquity is transforming companies' digital strategies, visit us here: https://www.mobiquity.com/our-work.
About Hexaware Mobiquity
Hexaware is a global technology and business process services company. Our 29,000 Hexawarians wake up every day with a singular purpose; to create smiles through great people and technology. With 54 offices in 19 countries, we empower enterprises worldwide to realize digital transformation at scale and speed by partnering with them to build, transform, run, and optimize their technology and business processes.
Mobiquity, part of Hexaware, is a digital consultancy that partners with the world's leading brands to design and deliver compelling digital products and services for their customers. Its approach balances human needs with usefully applied technology, unbound creativity with research and analytics, and agile development with strict engineering and security standards. Hexaware Mobiquity has extensive experience in the banking domain, particularly in creating greenfield digital banks and new labels for our fintech and banking clients.
Learn more about Hexaware at https://www.hexaware.com. Learn more about Hexaware Mobiquity at https://mobiquity.com.
Media Contact
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SOURCE Hexaware Mobiquity
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