Regional Deep Dive: Digital Banking Transformation in North America—Challenges, Opportunities, and Success Stories

Navigating the Digital Banking Landscape in North America

North American banks are at a pivotal moment in their digital transformation journeys. As customer expectations evolve and competition intensifies—from both fintech disruptors and digital-native giants—banks across the United States and Canada are reimagining their business models, technology stacks, and customer experiences. Yet, the path to digital maturity in this region is shaped by unique regulatory, technological, and cultural factors that demand a tailored approach.

Key Findings: The State of Digital Transformation in North America

Recent research from Publicis Sapient’s Global Banking Benchmark Study, including insights from 250 senior U.S. banking leaders and 50 Canadian executives, reveals a sector in transition:

Unique Challenges in the North American Market

Regulatory Complexity

North American banks operate in one of the world’s most heavily regulated environments. Compliance with federal, state, and provincial regulations—alongside evolving data privacy and cybersecurity mandates—requires significant investment and agility. Regulatory scrutiny can slow the pace of transformation, but it also drives banks to adopt robust, future-proof solutions.

Legacy Infrastructure

Many established banks in the region are burdened by decades-old core systems. These legacy platforms are expensive to maintain, limit the speed of innovation, and make it difficult to deliver the real-time, personalized experiences customers expect. The imperative to modernize the core is now recognized as a top priority across the industry.

Competitive Pressures

North American banks face fierce competition not only from traditional peers but also from fintechs, neobanks, and technology giants entering the financial services space. The ability to attract and retain top talent, innovate rapidly, and deliver superior customer experiences is seen as critical to survival and growth.

Opportunities: Accelerating Transformation

Core Modernization

Modernizing core banking systems is the foundation for digital transformation. Cloud-based, API-driven platforms enable banks to launch new products faster, reduce costs, and unlock the power of real-time data. Publicis Sapient’s work with leading banks demonstrates that core modernization is achievable—whether through full-scale transformation, business line migration, or digital greenfield initiatives.

Harnessing Data and AI

Banks are increasingly investing in data and analytics to personalize customer journeys, improve decision-making, and drive operational efficiency. The adoption of AI—especially generative AI—is accelerating, with banks using these technologies to automate processes, enhance risk management, and deliver tailored experiences at scale.

Building Agile Operating Models

Operational agility is no longer optional. North American banks are restructuring teams, embracing cross-functional collaboration, and adopting agile methodologies to respond more quickly to market changes and customer needs. 33% of U.S. banks now report having a fully agile operating model, a significant step forward for the region.

Partner Ecosystems

Collaboration with fintechs, technology providers, and other ecosystem partners is enabling banks to innovate faster and expand their offerings. Publicis Sapient’s extensive partner network helps clients access best-of-breed solutions and accelerate their transformation journeys.

Success Stories: Publicis Sapient in Action

Actionable Insights for North American Banks

  1. Prioritize Core Modernization: Replace legacy systems with cloud-based, API-driven platforms to unlock agility, reduce costs, and enable innovation.
  2. Leverage Data and AI: Invest in data integration and AI capabilities to personalize customer journeys, automate processes, and improve risk management.
  3. Embrace Agile Ways of Working: Restructure teams around customer journeys, empower cross-functional collaboration, and foster a culture of experimentation.
  4. Strengthen Regulatory Compliance: Build compliance into transformation initiatives from the outset, leveraging technology to streamline reporting and risk management.
  5. Expand Your Partner Ecosystem: Collaborate with fintechs and technology partners to access new capabilities and accelerate time to market.

The Road Ahead

Digital transformation in North American banking is both a challenge and an opportunity. Banks that act decisively—modernizing their core, harnessing data and AI, and building agile, customer-centric organizations—will be best positioned to thrive in the digital era. Publicis Sapient stands ready to help North American banks accelerate their journeys, drawing on deep industry expertise, proven methodologies, and a track record of delivering results at scale.

Ready to build the bank of the future? Connect with our North American financial services experts to start your transformation journey today.