LONDON–A new report reveals where banks are investing tech dollars, why they are doing so, and where those dollars will be invested in the future.
The analysis, released by Turnerlittle.com, investigates the business priorities of global banks in 2018 and is based on a survey of 221 financial institutions across 29 markets.
Turnerlittle.com broke down the priorities for global banks in 2018 into five main categories: protect, control, grow, reshape and optimize.
“To ‘protect’ comes out top. In fact, the highest priority in every category is to ‘enhance cyber and data security’ – at 89%, plainly indicating this is an urgent focus,” the company reported.
Other high priorities identified in the survey included:
- Implement a digital transformation program (85%)
- Recruit, develop and retain key talent (83%)
- Gain efficiencies through technology adoption (82%)
- Optimize the balance sheet (78%)
“It’s clear traditional banks need to embrace digital advances, such as those under the fintech umbrella, to drive opportunity,” said James Turner, managing director of Turnerlittle.com. “Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success.”
Turnerlittle.com added “it is understood embracing digital innovation will provide banks with the key to reach their goals in 2018 and to appease fed up consumers. It’s time to move with new advances, rather than wasting energy, money and custom fighting the tide.”
What’s Ahead
The study further found that within the next three years, 40-60% of companies will choose to purchase the following digital advances:
- Artificial intelligence
- Augmented and virtual reality
- Cloud technology
- Cryptography/cybersecurity technology
- Identification software based on biometrics
According to Turnerlittle.com, the top five reasons banks will invest in technology this year are:
- To strengthen competitive positioning and build market share (70%)
- Expand ability to acquire, engage and retain customers (67%)
- Generate cost savings and operating efficiencies (62%)
- Mitigate growing cybersecurity threats (58%)
- Drive digital transformation program (51%)