Kristin Moyer

A member of the Gartner Blog Network

Kristin R. Moyer
Research Vice President
14 years at Gartner
more than 20 years IT industry

Kristin Moyer is a Research Vice President in Industry Advisory Services/Banking and Investment Services. She has more than 20 years of experience across the global high-technology industry in a variety of roles. Ms. Moyer's research coverage includes… Read Full Bio

Retail Banking is Not Dead Yet

by Kristin Moyer  |  October 7, 2014  |  2 Comments

Nonbanks are changing the rules of digital banking, leading many to question the relevance of retail banks. The days of bank bashing should end. Few nonbanks have sustainable business models, and banking CIOs can take advantage of this situation.

Digital firms and nonbank startups are leading to the irrelevance and demise of retail banks, according to many nonbank executives, the media and others. They argue that:

  • Most bank branches will disappear.
  • A high percentage of bank revenue is in play.
  • Banks are not defending their core business.

Their conclusion is that retail banking is practically dead, or will be soon.

It is true that nonbanks are changing the rules of the financial services game (Gartner clients see “Nonbanks Are Changing the Rules of Digital Banking” ). However, we disagree with the negative outlook on retail banking. One of the many problems with arguments that predict the demise of retail banking is that few nonbanks have sustainable business models. There is a saying in football/soccer that if you want to make £1 million on a team, start with £10 million. This phenomenon is also true of many nonbanks. Many nonbanks have business models that are focused on moving to a zero-cost economy, or at least undercutting costs.

Many of these same nonbanks, however, are struggling with revenue and net income (Gartner clients see “Retail Banking is Not Dead Yet“).

Just because many new competitors are stumbling does not mean that CIOs should relax and continue enabling traditional banking in a business-as-usual way. Digital firms that have become involved in banking are innovating at a rapid pace. This pressure provides banking CIOs to acquire talent from nonbanks and gain approval for more aggressive architecture, core banking, branch and other transformations.


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Banks are in a Race to Remain Relevant

by Kristin Moyer  |  June 6, 2014  |  2 Comments

Digitalization is blurring the boundaries between industries to the point that some will cease to exist. Will banking be one of them?

Anyone can build a bank. For example, peer-to-peer lending turns everyone into a bank. Banks could potentially have to compete against every individual because each person could be a lender. In fact, individuals can lend money, their car, their house or even their driveway like they do in London at ParkatmyHouse (Gartner clients see “Lead in the Digital Industrial Economy Using Insights From Symposium’s Analyst Keynote“).

Banking CxOs and line of business leaders will need to purposefully disrupt their own business models in order to succeed in a digital business world. Open banking APIs, apps and app stores are already enabling this disruption, but most banks have yet to become more open due to regulatory compliance and security concerns as well as cultural tendencies to remaining closed and controlled. However, regulators in some regions may in fact force open banking (for example, Articles 58 and 59 of PSD2 indicate that third parties that are regulated will be allowed access to account information, transaction information and payment initiation). In addition, new competitors are using open banking technologies (like APIs and app stores) and ecosystems (like partners and third party developers) to disrupt the industry faster than ever before. For example, nonbank APIs from Amazon, PayPal, Zillow and others are 2 to 5 years ahead of retail and commercial banking APIs. Continuing on a path of isolation will lead to dwindling market opportunities and customer irrelevance for banks.

Open banking is the self-service discovery, provisioning and creation of new business models and services by ecosystems inside and outside the bank (Gartner clients see “Reference Model for Open Banking APIs, Apps and App Stores”). APIs, apps, app stores, developer/partner ecosystems and other technologies provide CIOs with the ability to (Gartner clients see “API Deployment Models That Accelerate Digital Banking“) enable mobility and innovation, increase product and service accessibility and create new business models.

Banks are in a race to remain relevant. Open banking provides banking CxOs and line of business leaders with a way to transform what it means to be a bank.


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Where’s That App? The Rise of Banking App Stores

by Kristin Moyer  |  April 8, 2014  |  3 Comments

Few banks have deployed their own customer app stores. However, the high demand for apps is causing challenges that could negatively impact sales and user experience. Bank CIOs, CMOs and line-of-business heads should evaluate the potential need for bank-specific app stores.

iTunes, Google Play and other public app stores provide a highly visible and free way to deploy mobile banking apps. Public stores have been the primary app deployment mechanism for banks since 2011, when many banking apps first began to emerge. Bank websites also have been used to list the mobile apps available, usually by LOB.

The app world has changed dramatically since then, and banks may require a new approach to app deployment. First, the total number of apps available has grown rapidly since banks began to deploy them (please see our research on banking app stores here), and we expect this to continue (please see our research on 14 banking apps for 2014 here). This explosive growth has caused challenges with app visibility on both the public stores and bank websites.

Banking app stores can address these and other challenges, but may not always be warranted.

Reasons to Deploy a Banking App Store Reasons Not to Deploy a Banking App Store
App discovery Cost
User experience Additional complexity
Co-creation/collaboration Operational risk


We advise CIOs, CMOs and line of business heads to evaluate the potential need for a banking app store in the 2014 to 2015 timeframe. We’ve created a decision framework to help guide this evaluation.


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API Deployment Models that Accelerate Digital Banking

by Kristin Moyer  |  March 5, 2014  |  3 Comments

Digitalization is ushering in a seismic change in the way products are consumed, services are delivered, and revenue and costs are allocated. Customer experience is at the center of this change. The balance of power has shifted fundamentally in favor of the user, but line-of-business leaders have yet to purposefully give more control to users in any kind of meaningful way. This is vital to accomplish, because users have become accustomed to having control in other areas of their digital life, in some cases (such as media, travel and e-commerce) for more than a decade.

New digital entrants Puddle, Billtrust, Crowdtilt, LevelUp, Square and others have focused on shifting control to users much more aggressively than banks. Public Web APIs have been key to their success, both in terms of transforming customer experience (by giving users control) and achieving rapid growth. For example, WePay’s monthly crowdfunding payment processing is around $1.5 million and has grown by 35% per month since it got its first crowdfunding API partner in October 2011. Braintree, acquired by eBay for $800 million in cash, is a merchant acquiring payment platform based on APIs and processes more than $10 billion per year.

Just as they have for new digital entrants, public Web APIs provide banking CIOs, chief marketing officers (CMOs) and line-of-business leaders with an opportunity to shift control to users and improve net profits, as well. Public Web APIs can be deployed in three main ways, each of which has a different impact on customer experience and net profits: 1) enable mobility and innovation, 2) increase product and service accessibility, 3) create new business models (Gartner clients, for details on each deployment model please see “API Deployment Models that Accelerate Digital Banking“).

Global banking net profits are under a tremendous amount of pressure. However, prioritizing public Web API deployment based on the highest net profit impact possible will not always be the right choice for CIOs and CMOs. By 2015, more than 50% of public Web API deployments will be to improve digital customer experience as an even more important priority than net profits.


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Managing Nexus Fatigue

by Kristin Moyer  |  January 8, 2014  |  Comments Off

The Nexus of Forces is absolutely transformational and is changing the nature of business and even how individuals think of business, finance and money itself. However, there is also a dark side to the Nexus of Forces. In many ways, the nexus has led to a disconnected, anti-social world with extreme tiredness of mobile, social, cloud and information — in other words, nexus fatigue. Nexus fatigue has occurred largely because of complexity and a loss of control (e.g., unwanted offers), trust (e.g., 10% of product reviews are fake), privacy (e.g., National Security Agency data mining) and security (e.g., increased mobile fraud). We have too many texts and posts to keep up with, it is too hard to manage what is public and what is private, and it is too hard to evaluate the validity of product reviews. The list goes on.

Fatigue leads to exhaustion and breakdown. If intervention does not occur, then nexus fatigue can damage your:

  • Organization — Consider these incidents: A CFO tweeted too much, too soon (Francesca’s), weather data was not leveraged in fighting a fire (Yarnell Hill fire), financial risk data was ignored (London Whale), and email went unread and data was ignored (nuclear meltdown at Fukushima).
  • Employees — Overuse of nexus technologies has been shown to negatively impact performance and health (see the impact of nexus fatigue below).
  • Customer relationships — Business leaders are investing in nexus and digital technologies 3 that could disconnect them from customers who are already nexus-fatigued.
  • Yourself and your personal relationships — Consider these real-life headlines: “Japan’s Lonely May Rent ‘Family’ for Home Visits,” “Diablo 3 Death: Teen Dies After Playing Game for 40 Hours Straight,” “Girl Starved to Death While Parents Raised Virtual Child in Online Game,” “Forecast: Sex and Marriage With Robots by 2050.”

Managing nexus fatigue proactively and properly (clients, please see here for more details) is truly a matter of life and death for individuals that have struggled to curb their use of technologies. For corporations, nexus fatigue can negatively impact reputation and, potentially, viability in extreme cases. It is essential that CIOs have tools to manage nexus fatigue for their organization, employees, customers — and even themselves.

Addressing nexus fatigue requires systemic (placing the burden on systems, societies and government) and individual action (limiting personal use). To deal with fatigue, start with identifying symptoms and impacts for both employees and customers. Once these are known, personal actions (like putting your mobile phone away during dinner) and new nexus technologies that protect, make life easier and connect people (clients, please see here for more details) can help mitigate the adverse effects of fatigue.

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Digital Banking and the Role of APIs, Apps and App Stores

by Kristin Moyer  |  December 11, 2013  |  Comments Off


Open banking uses APIs, apps and app stores to create radically different approaches to identity, data and intelligence, access and delivery, and location and context (customers, please see this research for more details). Because of this, open banking is a key enabler to becoming a digital bank. Banking apps are growing at more than 100% per year already. We think that by 2016, 75% of the top 50 global banks (by assets) will have launched an API platform and 25% will have launched a customer-facing app store.

Open banking is a differentiator today for early adopters like Crédit Agricole, Capital One, BBVA, Deutsche Bank, E-trade and others. However, it will become a necessity within 12 to 24 months to make progress with digital banking and compete effectively with other banks and nonbanks. Because of this, we believe that CIOs that have yet to launch open banking should include budgeting for strategy, planning and an initial launch in 2014.

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Euro Crisis: 50% of Firms Stuck Behind the Planning Eight Ball

by Kristin Moyer  |  January 20, 2012  |  2 Comments

Contributed by David Furlonger

Today we conducted our Euro Crisis Webinar. 416 participants were surveyed about:

  • Whether their enterprise had plans in place to deal with a worsened euro crisis
  • Whether the euro crisis has impacted their IT budget
  • Whether the euro crisis would influence investments in innovation

Results of the polling revealed that 50% of respondents covering all industries have no contingency plans in place to manage a worsened euro crisis. We urge clients to better prepare themselves via accessing existing research available on and setting alerts for upcoming research using the search term “euro crisis”.

Existing published research includes:

Peter Redshaw Jan 18th: Euro Crisis and the Threat to Outsourcing

Andrea DiMaio Jan 18th:Examine Six Risk Dimensions of IT Preparedness for the Euro Crisis

Alistair Newton Jan 16th: Expect the Euro Crisis to Adversely Affect Payment Systems and Industry Supply Chains

Keith Harrison Jan 13th: Euro Crisis: Issues and Recommendations for Electric Utility IT Functions

Mim Burt Jan 11th: How Retail CIOs Should Respond to the Unfolding Euro Crisis

Mark Raskino Dec 29th: Euro Crisis: Key Questions CEOs and CIOs Should Ask Each Other

Stessa Cohen Dec 27th: Euro Crisis Offers Banks Opportunity to Revise Social Media Strategies to Engage Customers and Innovate

Dave Aron Dec 23rd: Ensure Your IT Strategy Is Ready for a Euro Crisis

Andrea Di Maio Dec 22nd: What the Euro Crisis Means for Government IT

David Furlonger Dec 20th: The Euro Crisis: Four Scenarios and How CIOs Can Prepare for Them

David Schehr Dec 20th: The Euro Crisis Will Mean More and Different Customers for Wealth Managers

David Furlonger Dec 6th: CIOs Should Address the Impacts of the Euro Crisis on Their Enterprises Now

David Furlonger Oct 1st 2010: The European Crisis and Market Impact: Situation Remains Dire

David Furlonger Apr 17th 2009: The Financial Market Crisis: Storm Clouds Over the Euro

We also asked webinar participants about their IT investment plans:

  • 52% of respondents believe IT budgets will remain unchanged
  • 15% expect an increase
  • 9% expect a decrease of <5%
  • 25% expect a decrease of >5% in their IT budgets

Clients should watch for forthcoming research from analyst Kurt Potter: Actions to Fight Cost Optimization Fatigue during the Euro Crisis, for additional guidance on how to work through reduced IT budget scenarios

Lastly, we also asked webinar participants about their views on how the euro crisis will impact investments in research and development and discretionary spending on innovation:

  • 17% revealed that discretionary spending would increase
  • 69% suggested there would be no change
  • 14% voted that discretionary spending investments would be cut to zero

Those clients who expect no change in their innovation spending patterns or who anticipate a cut can gain further insight into the importance of maintain an innovation focus during crisis by reviewing an upcoming note from David Furlonger: Euro Crisis Innovation Remains Critical to Survival and Growth

We thank everyone for their participation today and welcome client enquiry and continued interaction on this important subject. An archive of today’s material can be found on the Gartner Webinar website.


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Euro Crisis:Get Ready for More Regulation and Protectionism.

by Kristin Moyer  |  January 10, 2012  |  Comments Off

Contributed by David Furlonger   [ Register Now For January 19th webinar: Euro Crisis Webinar ]

An interesting article appeared on Reuters yesterday: Financial repression is here and may be helpful.

It discusses and supports the potential for greater control over the financial markets by governments, including a continuation of the current schemes that print more money for central banks to lend to banks who then buy more “risk free” government debt. Throw in a little inflation and the long-term debt load depreciates. Merkel is calling for more money for Greece and I note that the US debt ceiling has been nearly reached – again. (Where did that last U$1tn get spent anyway..?) The suggested alternative to financial repression via regulation is considered far worse. But is it?

Admittedly austerity packages don’t help either and are creating popular unrest at levels considered worrying enough for several commentators to point to previous historical conditions that led to bloodshed.  Nevertheless, structural reform doesn’t even seem to be on the agenda, and certainly lacks political will.

In fact, the most recent Economist leader hinted rather as political posturing and included the repressive/protectionist impact of:

  • The imposition of the Tobin tax on financial transactions (suppressing proprietary trading),
  • Forcing houses that do clearing & settlement of derivatives that are denominated in euros to be located in eurozone,
  • Forcing OTC derivatives to move to exchange-traded instruments

While maintaining market order, curbing greed and improving terrible risk management is important, protectionism and unnecessry regulation will only introduce artificial subsidies. Financial institutions will surely be wise to this as the costs of managing red tape increase eating further into profit margins. The euro crisis and political/regulatory meddling will therefore likely encourage Asian markets to be more aggressive with strategies to evolve their own platforms and tempt firms to move east.

Regardless of Europe 2020, a 2010 European Commission report highlighted more than 330 trade restrictions that included cross border challenges such as tariff increases, licensing requirements etc, as well as internal restrictions such as certification schemes, buy-national policies etc. A worsening euro situation leading to a meltdown or default scenario will only make matters worse: The Euro Crisis: Four Scenarios and How CIOs Can Prepare for Them, and likely bring about yet more “repression.”

Perhaps the most immediate form of any financial repression will involve protectionist initiatives designed to “protect” local jobs. This has two implications for CIOs:

  • General enterprise HR sourcing and labour/talent mobility
  • Ability to outsource

This will require CIOs to perform a risk analysis/containment and draw up contingency plans for all outsourcing contracts. Such planning will enable CIOs to adapt outsourcing strategies as needed. In the current crisis, these plans need regular review. The key question here is to ask: what contractual contingency has been taken in the event of a significant change to the business model of the firm due to meltdown or euro break-up?

CIOs should carefully consider their longer-term HR plans in terms of location of critical talent, training mechanisms, long-lining business support and the specific contractual requirements for IT staff and their jobs. Flexibility is key, as is increasing the institutional knowledge of non-eu locations, working practices and culture.

In terms of the ability to outsource, corporations and government departments have been under pressure in the press and from unions to reconsider outsourcing while simultaneously looking to make local redundancies in an effort to cut costs: Backlash leads Birmingham City Council to reconsider offshoring IT-jobs and Department for Work and Pensions staff begin industrial action. CIOs need to have in place communication and media management plans to address any public backlash from operational changes.

CIOs should also note that repression may not be overt. They need to prepare for additional administrative requirements, the impact of subsidies on ROI and potentially more foreign exchange rate manipulation that will impact the costs of products and services.  Note the last quarter’s Swiss moves in this regard: Swiss Franc Protectionism. Such protectionism will likely not occur as “one-off’s” at the moment annual budgets are set. This means CIOs will require financial flexibility from CFOs as part of ongoing project commitments.

Loading companies with more red tape will in the end just be counterproductive for all of Europe, especially at this moment of econommic malaise. However, CIOs must prepare for more protectionism, whether overt or hidden under the banner of market stabilization.

Remember to read our latest research:

CIOs Should Address the Impacts of the Euro Crisis on Their Enterprises Now

The Euro Crisis: Four Scenarios and How CIOs Can Prepare for Them

Ensure Your IT Strategy Is Ready for a Euro Crisis

Euro Crisis: Key Questions CEOs and CIOs Should Ask Each Other

What the Euro Crisis Means for Government IT

Euro Crisis Offers Banks Opportunity to Revise Social Media Strategies to Engage Customers and Innovate

The Euro Crisis Will Mean More and Different Customers for Wealth Managers

And remember to diarise our January 19th webinar on this topic: Euro Crisis Webinar

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Euro Crisis: What is the Connection between Hypothecation and the Future of Money?

by Kristin Moyer  |  December 20, 2011  |  Comments Off

Contributed by David Furlonger

On the weekend, I read a rather alarming commentary by David Stockman European Banking System is on the Verge of Collapse. While this analysis clearly highlights the fragility of bank balance sheets, it doesn’t dig deeply into the graver issue facing the Eurozone policy makers and indeed the world –  that of hypothecation. As has been highlighted in the past (MF Global may be apocalyptic for the eurozone), the deeper concern is the amount of leveraged collateral that exists in the markets that has very little, or zero underlying asset foundation. In the sort-term, such leverage should give our children cause for concern. However, perhaps this is just the beginning of a more slippery slope.

The almost constant press commentary and hype about mobility and mobile/internet payments causes me to consider a potentially similar situation of hypothecation and re-hypothecation occurring in The Future of Money.

While regulation is inherently expensive and potentially limits free market activity, it can also (if applied prudently) act as a sound governor of irrational activity – witness the lack of attention afforded to AIG, Lehman’s and MF Global in the UK, and their excessively leveraged use of collateral.

Why is this relevant for the Future of Money and mobility? Mobile and Internet commerce have enabled the expansion of financial services activity beyond the boundaries of the banking industry and remit of regulators. Multiple participants (Telcos, Payment providers, Retailers and even private individuals) offer products and services that are bought, sold and financed outside of the traditional financial services market. They and their activities are unregulated and potentially unchecked due to the consumerization of IT and the power/reach of the Internet. Moreover, the enabling currency of these transactions is not necessarily fiat-based, ie government issued national currency.

As the euro crisis unfolds and individuals face difficult living conditions and austerity constraints, they may well turn to new, digital currencies (loyalty tokens, gaming credits, bandwidth etc) as a means of survival, continuing to conduct commercial activity, barter etc. And, much of this activity may be leveraged and the means of payment used as collateral.

So, now to the point of hypothecation and the question for our grand children:

  • in a totally unregulated and poorly audited market,
  • where digital content and value can be created and exchanged in real-time by anyone,
  • without the frictional cost of an intermediary,
  • where potentially there is no underlying asset to back the exchange for value.

Is the Future of Money facing an apocalypse of digital new money hypothecation?

Of course, this may be a stretch and is perhaps an insignificant concern in the current crisis. However, as policy makers debate the “solution” to the current malaise, keeping one eye on emergent trends may help defer an unfortunate legacy.

What does this mean for our clients?

  • The rush to connect with innovative payment schemes, providers and commercial channels should not abrogate responsibility of senior executives to monitor carefully the viability of counterparty relationships, and the extent of any “new money” hypothecation.
  • Applications to manage collateral must account for new mediums of exchange and systems must be capable of managing new money
  • The criticality of developing a holistic strategy for mobile financial services incorporating the Future of Money is essential to maintaining sound fiscal management.
  • Companies should emphasize their account services (statements, fraud protection, etc.) as they launch payment services that support digital content, social gaming, social commerce, etc

 Remember to read our latest research: CIOs Should Address the Impacts of the Euro Crisis on Their Enterprises Now and The Euro Crisis: Four Scenarios and How CIOs Can Prepare for Them, as well as attend the January 19th webinar on this topic: Euro Crisis Webinar and contribute to our survey: Euro Crisis Survey

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Can Europe Innovate Out of a Crisis?

by Kristin Moyer  |  December 13, 2011  |  1 Comment

Contributed by David Furlonger

Commentators suggest over half of the companies on the 2009 Fortune 500 list began during a recession or bear market. Does this offer hope to a European market saddled with an on-going crisis and likely poor economic growth, if not recession, for several years to come?

The new European Programme for Research and Innovation Horizon 2020  European Programme for Research and Innovation Horizon 2020, which will come into effect from 2014 and will run until 2020 affirms this hope. Indeed, one can also argue that the level of entrepreneurship in many European countries is also quite strong as evidenced by THE GLOBAL ENTREPRENEURSHIP AND DEVELOPMENT INDEX. However, there is more to these two positive indications than meets the eye.

 First, Horizon 2020 is not a new initiative; an earlier attempt to launch Europe on a path to innovative growth came in 2000 at the Lisbon Summit. In addition, one has to question whether the goals set then have been achieved, or are close to achievement.

The Eu has expanded and the recent euro crisis has highlighted stark divisions of interest and capability between member nations. There remains a large difference in economic and entrepreneurial performance in many countries which is manifest in both scientific and technological development.

 Second, innovation and entrepreneurial activity requires sustainable funding and individual creativity. However, in: Is the Economic Crisis Impairing Convergence in Innovation Performance across Europe? , data suggests the level of investment in innovation during 2006-2009 has fallen substantially.

 What does this mean for our clients?

  • Centralized political structure doesn’t necessarily translate into individual invention, creativity and growth oriented development, that is sustainable and drives meaningful change – witness the different approach taken in Silicon Valley regardless of Federal US economic policy 
  • Companies seeking innovation should not wait for government bureaucracy to deliver performance
  • Even if new investment may be hard to come by and discretionary spend is cut back, CIOs should still take an inventory of their initiatives and seek to reallocate money from poorly performing ones to alternates that have proven success records. Ie seek to scale innovation success

Remember to read our latest research:CIOs Should Address the Impacts of the Euro Crisis on Their Enterprises Now, as well as attend the January 19th webinar on this topic: Euro Crisis Webinar and contribute to our survey:Euro Crisis Survey.

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