Powered by MOMENTUM MEDIA
subscribe to our newsletter

Finance executives banking on technological innovation

Two-thirds of banking executives say that technology will continue to drive global banking in the next five years, while 77 per cent see artificial intelligence making a splash, a new survey has found.

A new global survey conducted by the Economist Intelligence Unit on behalf of banking software company Temenos has found that banking executives are becoming more synchronized in their position on the importance of technology in the future of banking.

The study, now in its seventh year, surveyed over 300 senior banking executives from around the world, with almost half holding C-suite positions in their respective countries. This year's survey was conducted between February and March 2020.

This recent survey found that two-thirds (66 per cent) of banking executives now believe that new technologies will continue to drive global banking in the next five years, compared to 42 per cent in 2019.

Further, over three-quarters (77 per cent) of respondents agreed that unlocking value from Artificial Intelligence (AI) will be a key differentiator between winning and losing banks, while improving user experience through greater personalisation ranked highest (28 per cent) among the most valuable uses for AI. 

Advertisement
Advertisement

Meanwhile, 84 per cent of respondents agree that DevOps, which brings together software development and IT operations using cloud-based platforms, will drive transformation in core banking, while 81 per cent of banking executives believe a multi-cloud strategy will become a regulatory pre-requisite. 

The results also found that the primary focus of banks’ technology investment is on cybersecurity (35 per cent), followed by developing AI platforms such as digital advisors and voice assisted engagement channels (33 per cent), and cloud-based technologies (27 per cent). 

Executive bankers also stated they believe that COVID-19 is likely to accelerate the digital transformation of banks, which already face intense competition from payment players, Big Tech and e-commerce firms. 

With COVID-19 accelerating the digitization of banking, 45 per cent of banking respondents said their strategic response is to build a ‘true digital ecosystem’ to better service customers and develop new revenue streams.

Max Chuard, Temenos chief executive officer, said: “Banks were under huge pressure due to new competitors, ongoing regulation and slowing profit growth – these pressures have intensified as a result of the pandemic. 

PROMOTED CONTENT


“The report highlights that senior banking executives believe that new technologies such as AI will have the greatest impact in banking in the coming years. As the digitization of banking continues, these new technologies can help banks fend off competitors and gain competitive advantage.”

“Trends toward digital banking, cloud and SaaS models will only become more pronounced – in the new normal, the need for modern banking technology will be greater than ever,” Mr Chuard added.

Pete Swabey, an editorial director from The Economist Intelligence Unit, said: “Retail, corporate and private banks were already under pressure to deploy new technologies quickly and change their cultures in order to compete with big tech firms and payment players and deliver an engaging digital experience. 

“Now, as digital banking surges as a result of the coronavirus crisis, this task is more pressing than ever.” 

[Related: Bank profits fall 14% despite $16bn rise in approvals]

Finance executives banking on technological innovation
mortgagebusiness

If you have ever considered how you could better service your SME clients but lack the knowledge or confidence to do this beyond referring them on, this is a must-attend event for you. Don't miss SME Broker Bootcamp, a jam-packed, free-to-attend, practical workshop. Register today and secure your place at this interactive, flexible, must-attend event.

Hannah Dowling

Hannah Dowling is a journalist for mortgage business, the leading source of news, opinion and strategy for professionals working in the mortgage industry.

Prior to joining the team at Mortgage Business, Hannah worked as a content producer for a podcast catering to property investors. She also spent 6 years working in the real estate sector at a local agency. 

Hannah graduated from Macquarie University with a Bachelor of Media and Journalism. 

You can email Hannah at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Sales of new detached homes continued to increase for five consecutive months, despite the end of HomeBuilder grants, confirming a strong d...

An economist with Bluestone has responded to predictions that the cash rate will increase in August, calling the notion “nonsensical”. ...

The Real Estate Institute of Australia (REIA) said it’s expecting demand for sustainable homes and living to increase over 2022. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

When do you expect the cash rate to start increasing?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.