This year’s study, which surveyed 148 banks in 66 countries, revealed that as the global economy recovers, retail banks across the world are increasingly investing in innovation as a means of generating revenue and controlling costs. In fact, 60 percent of banks surveyed have an innovation strategy compared to just 37 percent five years ago, when the report was first issued.
The study also found that to overcome the main barriers to innovation – legacy systems and organizational silos – banks are looking towards technologies that can simplify their operations and deliver a richer customer experience. In particular, mobile innovation is beginning to gather pace, with 77 percent of banks deploying or planning to deploy a mobile wallet solution.
Key findings of the study include:
76 percent of banks believe they are becoming more innovative, with the biggest increase being seen in customer channels
77 percent of banks surveyed are increasing investment in innovation. This is an encouraging trend as the 2009 study revealed only 13 percent of banks had increased investment
More than half (58 percent) of banks surveyed believe the ability to deploy new systems in components would have a positive impact on their ability to innovate
Mobile location-based offerings were cited as another area of innovation for banks, with 69 percent deploying or planning on making deployments
To enhance their product and service offerings, 45 percent of banks are already using or planning to invest in gamification, and 61 percent of banks currently allow or plan to allow customers to do some form of product personalization
Large and medium sized banks rated the top three barriers to innovation as legacy IT systems, culture and organizational silos
Haragopal M, Global Head of Finacle at Infosys:
"It is good to see innovation agenda taking the center stage at banks, with many focusing on increasing business process speed, agility and efficiency. The report also reiterates that retail banks across the world have recognized that simplification and innovation can go hand-in-hand to help grow business and deliver excellent customer service."
Patrick Desmares, Secretary General at Efma:
"This year's study indicates a global convergence of innovation practices around overcoming the barriers presented by legacy technology and ensuring that customer experience channels are optimized. Many retail banks are now creating innovation strategies and underpinning them with investment which tells us that global economies are beginning to recover. As banks once again target growth process, channel and operational innovation, this will only increase in importance."
The full Innovation in Retail Banking 2013 report can be downloaded from the Infosys website or SlideShare
Infosys Finacle and Efma will present the key findings of the study — at a webinar at 11.00 CET (10.00 BST) on 22 October. More details click here
Let's Simplify Banking white paper click here
Last year's report: Innovation in Retail Banking 2012
As a global not-for-profit organisation, Efma brings together more than 3,300 retail financial services companies from over 130 countries. With a membership base consisting of almost a third of all large retail banks worldwide, Efma has proven to be a valuable resource for the global industry, offering members exclusive access to a multitude of resources, databases, studies, articles, news feeds and publications. Efma also provides numerous networking opportunities through working groups, online communities and international meetings. (www.efma.com)
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