According to a study released by banking software company Temenos for the first time in five years banks are now more concerned with technology-driven trends than they are by regulation.
Nearly 78% of bankers believe that platformisation of banking sector will guide the market and help them to retain and regain businesses against the new payment players such as Google, Apple, Facebook and Amazon, the report says.
Conducted for Temenos by the Economist Intelligence Unit (EIU), the report provides a global examination into the strategic concerns of retail banking executives.
Further, the report points out that despite the banking world moving towards the implementation of open banking, all stakeholders need to co-operate to provide the user experience commensurate to the customers’ want while keeping their money and data safe.
Nearly 71% participants said that they are focusing their digital investment on cyber security, while only 17% said they are thinking about the risks from third-party relationships as a result of open banking.
The new study, which surveyed around 400 global banking executives, also highlights that banks can take the fintechs on by building all-encompassing platforms that are seamless with other products and services.
Digital investments are being executed to strengthen digital channel delivery capabilities such as mobile (cited by 54% of respondents), cloud-based technologies (48%), and in modernising front- and back-end systems (37%).
Despite AI becoming a key part of the new technology mix, just over 20% of respondents said they will improve the user experience
More than 61% of respondents said they still see a place for the traditional transaction-based branch model, nearly twice as many as those who believe it will be dead by 2020.
Temenos CEO David Arnott said: “Banking has reached a watershed moment with changing customer behaviours, disruptive new technologies and a dramatic increase in competitors from within and outside of banking.
“The most enlightened banks understand that to become truly digital they need to update their systems front-to-back. This will fulfil their business need for product agility; they can offer the right products, over the right channel, and at the right time.”