More than three quarters (77 per cent) of banking executives believing that unlocking value from artificial intelligence (AI) will be the differentiator between winning and losing during and after the Coronavirus crisis.

A global survey of 305 banking executives by the Economist Intelligence Unit (EIU) on behalf of Temenos, found that two thirds said new technologies such as AI and cloud will have the most profound impact on the global banking sector over the next five years.

Meanwhile, nearly half (45 per cent) of respondents said they were set on transforming their business models into digital ecosystems in the coming years, with a focus on integrating their self-built digital services and third-party offerings.

Improving user experience through greater personalisation was shown to be the most valuable use for AI identified by the study, at 28 per cent. The focus is also shifting towards enterprise agility with DevOps, which brings together software development and IT operations using modern cloud-based platforms.

While 84 per cent of respondents agreed that DevOps will drive transformation in core banking services, 81 per cent of banking executives believe a multi-cloud strategy will become a regulatory pre-requisite to this shift to digital.

The primary focus of banks’ technology investment is on cyber security (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).

Max Chuard, chief executive at Temenos, 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.

“As the digitisation of banking continues, these new technologies can help banks fend off competitors and gain competitive advantage.”

Pete Swabey, EMEA editorial director for thought leadership at the EIU, added: “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.”

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