Innovation in retail banking 2017: Reimagine banking 24 October 2017
The ninth edition of the Efma Infosys annual study on innovation in retail banking provides the following key takeaways:
• The percentage of institutions with a clearly defined innovation strategy dropped significantly from previous years. This is attributed to the inclusion of a greater diversity in the size of the organization this year.
• Organizations continue to increase investment in innovation strategies in all functional areas.
• Digitizing products and services, the customer journey and security were the top three areas of focus for digital transformation efforts.
• The top innovation challenge is systems integration and legacy technology.
• Organizations expect to see a measurable return from their investment in innovation in 1-3 years.
• Large tech companies, challenger banks and smaller fintech start-ups were considered to be the biggest threat to disruption.
• The greatest threat to banking products was expected to be in the areas of payments and mobile wallets.
• Technology investment is being made in ‘traditional’ technology as opposed to ‘disruptive’ technologies.
• Fewer than 50% of organizations had plans to deploy RPA solutions, while 70% of organizations planned to support a conversational AI solution.
• In terms of maturity of the financial institutions for using data driven insights, most of them are still at an early stage of using analytics for descriptive or diagnostic purpose.
• The quest for expertise in advanced technology and analytics is increasing industry-wide.