The Temenos report, “Forging new frontiers: advanced technologies will revolutionise banking”, in its seventh edition, also found that 66% of bankers see advanced technologies such as AI and machine learning will continue to drive the global banking sector in the next five years, up from 42% in 2019.
When asked about their strategic response to COVID-19, 45% of banking executives identified building a ‘true digital ecosystem’, while integrating self-built digital services and third-party offerings, as priorities, while 28% ranked improving user experience through greater personalisation as AI’s most beneficial capability.
Additionally, 84% said that DevOps will drive transformation within the sector, while 81% believe that a multi-cloud strategy will become essential for regulation.
Current Fintech surge to further disrupt traditional bank sector
As for investment going forward, cyber security (35%) came out on top as a top priority, followed by development of AI solutions, such as digital advisors and voice-assisted engagement (33%), and cloud technologies (27%).
“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,” said Max Chuard, chief executive officer at Temenos.
“The report highlights that senior banking executives believe that new technologies such as AI will have the greatest impact in banking in the coming years. As the digitisation of banking continues, these new technologies can help banks fend off competitors and gain competitive advantage.
“Temenos’ cloud-advanced, AI technology and rich banking functionality can help banks deliver value to their customers in the immediate term and accelerate their digital transformation to build sustainable growth in the future. Trends toward digital banking, cloud and SaaS models will only become more pronounced – in the new normal, the need for modern banking technology will be greater than ever.”
Pete Swabey, editorial director EMEA, thought leadership at The Economist Intelligence Unit, 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.”
Commissioned by Temenos, The Economist Intelligence Unit surveyed 305 global banking executives in February and March 2020.