July 10, 2014
/PRNewswire/ -- While technology is changing every aspect of banking operations, 77 percent of participants in a recent survey say the greatest impact will be on customer satisfaction and regulatory compliance. Some regulators, however, believe banks are moving too slowly. "The Benefits of Innovative Information Technology in the Banking Industry" was conducted by the Frankfurt School of Finance & Management,
New York University's
Stern School of Business and Management, the
University of Applied Sciences
and Arts North-Western Switzerland, the Business Transformation Academy (
(NYSE: SAP). The study uncovered various trends in banking, most notably a large disconnect between regulators' expectations and the ability of banks to meet compliance and reporting requirements. However, many banks have plans to increase their budget for IT to invest in the necessary banking solutions to meet these changing requirements.
The study included extensive desk research, in-depth interviews with C-level representatives from banks and regulatory authorities and a quantitative survey. It also provided detailed insights into the technology areas considered as most important for the industry. More than six out of 10 participants (65 percent) said mobile is the most important trend for the future, followed by in-memory computing (48 percent) and cloud (47 percent).
Banks Address a New Era in Information Technology
A senior executive from a large U.S. bank who was interviewed for the report noted that 25 percent of mobile phone users access financial services content on their phone, yielding a significant market opportunity for banks in mobile banking application development.
Mobile banking is following a similar usage curve to online banking, with
United Arab Emirates
leading in adoption. In emerging markets, mobile devices provide access to financial services to previously under-banked populations. As one study participant noted, "The Hispanic market have higher penetration of mobile devices relative to PCs, so that the mobile channel becomes critical to reaching and servicing this important and growing part of the population."
Respondents also recognize the opportunity in Big Data and analytics in banking and placed a much greater emphasis on the overall comprehensiveness of information. The top two priorities in platform features noted included completeness of aggregation (84 percent) and the availability of real-time information (62 percent).