In order to re-imagine banking in today’s increasingly competitive environment, there needs to be a focus on disruptive technologies and innovations, as opposed to simply an iterative focus. The winners in the future will be defined by those organizations that can leverage digital technologies to deliver a customer experience that goes beyond the ordinary.
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.
Keywords : Innovation , Bank Products & Services