Global Banking Outlook 2018, a study released by EY, suggests that global banks are prioritizing protection, control, growth, reshaping, and optimization this year. The survey consisted of 221 financial intuitions across 29 markets, revealing bankers are positive about their improvement ability throughout 2018. Eighty-nine percent of financial intuitions said their priority was to “enhance cyber and data security.”
Other high priorities include the implementation of a “digital transformation program” and to “recruit, develop and retain key talent.” Eighty-three percent answered they will “gain efficiencies through technology adoption” and 77 percent stated they want to improve risk management. Only 67 percent of banks said they will invest in technology that will “expand ability to acquire, engage and retain customers.”
Lower priorities include optimizing balance sheets and improving risk management. Only 77 percent of financial institutions polled said that one of their top priorities was to “meet compliance and reporting standards.” The report gave a glimpse into the future of these financial intuitions finding that 40 to 60 percent will invest in fintech such as artificial intelligence, augmented and virtual reality, cloud technology, and cybersecurity technology.
“It’s clear traditional banks need to embrace digital advances, such as those under the FinTech umbrella, to drive opportunity. Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success,” said James Turner, managing director of Turnerlittle.com. “In fact, it is understood embracing digital innovation will provide banks with the key to reach their goals in 2018 and to appease fed up consumers. It’s time to move with new advances, rather than wasting energy, money and custom fighting the tide.”
Turnerlittle.com analyzed the report and identified the top reasons banks are investing in technology including competitive positioning and cybersecurity. Sixty-two percent are positioning themselves to expand the ability “to acquire, engage and retain customers.” Technology such as Single Customer View may help banks achieve their retention and engagement goals by providing a 360-degree view of the customer, their relationships, and sales opportunities.
Learn more about Single Customer View here.