A third of retail banks looking to build digital services
Written by Hannah McGrath
Banks are preparing for their industry’s digital evolution by building their own standalone operations, with more than a third (36 per cent) looking at a greenfield digital bank, according to a survey by the Economist Intelligence Unit (EIU).
A global survey of 405 banking executives conducted by the EIU for Temenos also found that respondents see Open Banking as a true opportunity, with 41 per cent seeing their business models evolving towards becoming a digital ecosystem.
A further 28 per cent said they expect to offer their own digital and third-party banking and non-banking products and services.
Banks are focussing their digital investments on new technologies, with cyber security (39 per cent), cloud technologies (35 per cent) and artificial intelligence-powered digital advisers and voice-assisted engagement channels (29 per cent) being the leading focus for innovation.
In addition, the demand for behavioral data analysis is driving demand for cloud computing, with 60 per cent foreseeing banks deploying more computing power in the public cloud by 2025 than they currently deploy in all the private cloud data centres.
Max Chuard, chief executive officer at Temenos, said: “Five years from now, when describing intelligent banking, it will be a bank that is using cloud, AI and other emerging technologies, and will be capable of offering a whole range of innovative services to their customers.
“Forward-thinking banks are embracing open banking and open APIs to become aggregators or develop digital ecosystems,” he explained.
Pete Swabey, EMEA editorial director at The EIU, added: “The banks realise that if they are to remain relevant to their customers’ lifestyles and changing needs, they have to provide them with a safe digital ecosystem that protects their private data.”