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Tech & Core ModernisationWhy are digital customer journeys often fragmented in banks and insurers?
Digital fragmentation tends to result from siloed product ownership, legacy policy/account systems, and disconnected digital build-outs. Most…
Digital fragmentation tends to result from siloed product ownership, legacy policy/account systems, and disconnected digital build-outs. Most incumbents digitized “around” existing processes instead of redesigning them end-to-end. Insurance complexities (claims, underwriting) and banking regulatory controls (KYC/AML, credit risk) introduce additional orchestration layers that impair seamless journeys. Wealth management adds advisory compliance workflows, suitability checks, and portfolio data feeds, creating more fragmentation points.
Industry Distinctions
| Industry | Key Fragment Drivers |
|---|---|
| Banking | Legacy core, regulatory, multi-product silos |
| Insurance | Underwriting + claims + policy admin systems |
| Fintech | Accelerates faster but lacks breadth + profit pools |
| Wealth | Advisor systems + suitability + multi-custody data |
Channel Distinctions
Fragmentation strongest in:
- Multi-broker insurance channels
- Multi-branch banking
Advisor-centric wealth
Least fragmentation in:
- Direct-to-digital fintech
- Embedded finance and partner APIs
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