Global banks have made it clear what financial technologies they are planning to invest in over the course of this year, according to a report by business consultants Turner Little.
The company analysed a number of reports in order to arrive at its conclusions. These reports included Starling Bank’s report, Revolution or Evolution, and Ernst & Young’s Global Banking Outlook 2018.
The main findings of Turner Little’s analysis include:
- Consumers cite “unclear, complicated language and charges” as a top frustration in traditional banking.
- The highest priority for global banks in 2018 is to “enhance cyber and data security” – at 89%.
- 85% of global banks will prepare to “implement a digital transformation program” in 2018.
- A lesser priority for global banks is to “improve risk management” at 77%.
- 67% of banks: investment in technology that will “expand the ability to acquire, engage and retain customers”.
In terms of specific technologies Turner Little says 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.
The top five reasons why the banks are planning to invest in technological advances are the following:
- strengthen competitive positioning and build market share.
- expand the ability to acquire, engage and retain customers.
- generate cost savings and operating efficiencies.
- mitigate growing cybersecurity threats.
- drive digital transformation program.
James Turner, managing director of Turner Little, says: “It’s clear traditional banks need to embrace digital advances, such as those under the fintech umbrella, to drive opportunity. Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success. In fact, 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.”