A survey collating the opinions of 198 senior bankers found a trend in technology and innovation being utilised to combat threats in the industry.
Tementos’ latest ‘Challenges, Priorities and Trends in the Financial Services Sector’ survey, highlighted the threats present in the industry and methods to counteract them.
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The survey displayed massive structural change within the banking industry. 24% of respondents, 26% among retail banks, reported that product innovation was their number one investment priority, with digital channels, complying with new regulation and IT modernisation also ranking high.
Concerns ranged from regulation to new compeitition to changing customer behaviour. For the second year in a row, the biggest challenge was maintaining customer loyalty. 30% of respondents were concerned with this and worried that more empowered and better informed customers could begin to switch providers in greater numbers.
Competitive pressures from outside the industry were also a pressing matter. Non-banks, such as Apple and Google, were considered at least as serious as competition from within the sector by 23% of respondents.
David Arnott, CEO of Temenos, said: "The banking industry is undergoing a once in a generation shift, a second big bang. As these results confirm, it is digitisation, changing customer behaviour and regulation that are driving the change. What is encouraging about these results is that banks appear to be both cognisant of the challenges ahead and making many of the right investments to be able to offer the customer-centric banking services to compete successfully in the future."
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