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Trend analysis: IT innovations help banks sidestep the crisis
Globalisation, internationalisation, mergers and acquisitions – just some of the daunting challenges faced by the financial sector. At times like these, the role of IT is to prepare the way for successful business transition. Cutting costs and boosting process efficiency are not the only ways to improve performance –
to stay successful, banks need to innovate.
to stay successful, banks need to innovate.
IT still has plenty to add to the banking industry – not least because IT innovations can help banks overcome challenges in times of economic turmoil. These are the findings of a recent analysis into trends in the banking industry. The study was conducted for GFT by the market research and consulting institute Pierre Audoin Consultants (PAC). Over 100 bank representatives from eight different western European countries took part in the wide-ranging survey.
Banks still have a lot to catch up in the way they use IT
According to the respondents, there is still plenty of untapped IT potential for banks to exploit. Many respondents in the survey pinpointed specific areas in which IT could make a major contribution, both in operational areas and in terms of innovation. Looking at operational priorities, the commercialisation of banking takes pole position, followed by modernisation of core banking systems and straight through processing (STP). Survey participants named the quality and management of data as key innovations, as well as evaluating and using this data to boost customer loyalty. Respondents also named sales support, Web 2.0, the moder- nisation of sales networks and mobile sales support as key factors.
Different trends throughout Europe
The trend analysis also shows that banking in each country in western Europe is subject to different conditions. British banks are suffering more from the effects of the financial crisis than their continental counterparts, so they are focusing primarily on cutting costs. In Germany, banks see internationalisation as their main priority. Financial institutions in the Benelux countries are focusing on consolidation after a wave of mergers and acquisitions. There, the priority is to forge ahead with technical and operational integration, boost efficiency and slash costs. In France, where banks are experiencing heightened competition, the crucial factor is being able to react quickly enough to trends and market requirements.
In the Swiss banking market – one of the most developed in Europe – all of the above challenges have been the order of the day for years. Swiss banks have turned boosting efficiency and slashing costs into long-term, ongoing measures, alongside the development and implementation of new business models and technologies. A similar situation is seen in Spain, where the banking sector is operating on a high level after a series of mergers and acquisitions. Italian banks face their own special challenges, as highlighted by the survey. Compared to bank representatives in other countries, they see internationalisation as far more important.
A marriage with high potential: Spanish efficiency, German innovation and British market understanding
IT remains a driving force throughout the European banking industry, especially in challenging economic times. And as financial institutions in different European countries cater to very different needs, a pan-European approach to implementing new IT solutions can be extremely beneficial. For example, successful financial services providers can benefit from combining Spanish efficiency with German innovation and British market understanding. Neutral third-party partners, working closely internationally as close partners to the bank’s IT and technical departments, can also play an important role.
Click here to order the survey
Source
“Trends in the banking industry in 2009: the effect of IT on business success during an economic crisis”
Author: Hassan Hosseini, Pierre Audoin Consultants (PAC) GmbH, Munich
Published by GFT Technologies AG, Stuttgart
Banks still have a lot to catch up in the way they use IT
According to the respondents, there is still plenty of untapped IT potential for banks to exploit. Many respondents in the survey pinpointed specific areas in which IT could make a major contribution, both in operational areas and in terms of innovation. Looking at operational priorities, the commercialisation of banking takes pole position, followed by modernisation of core banking systems and straight through processing (STP). Survey participants named the quality and management of data as key innovations, as well as evaluating and using this data to boost customer loyalty. Respondents also named sales support, Web 2.0, the moder- nisation of sales networks and mobile sales support as key factors.
Different trends throughout Europe
The trend analysis also shows that banking in each country in western Europe is subject to different conditions. British banks are suffering more from the effects of the financial crisis than their continental counterparts, so they are focusing primarily on cutting costs. In Germany, banks see internationalisation as their main priority. Financial institutions in the Benelux countries are focusing on consolidation after a wave of mergers and acquisitions. There, the priority is to forge ahead with technical and operational integration, boost efficiency and slash costs. In France, where banks are experiencing heightened competition, the crucial factor is being able to react quickly enough to trends and market requirements.
In the Swiss banking market – one of the most developed in Europe – all of the above challenges have been the order of the day for years. Swiss banks have turned boosting efficiency and slashing costs into long-term, ongoing measures, alongside the development and implementation of new business models and technologies. A similar situation is seen in Spain, where the banking sector is operating on a high level after a series of mergers and acquisitions. Italian banks face their own special challenges, as highlighted by the survey. Compared to bank representatives in other countries, they see internationalisation as far more important.
A marriage with high potential: Spanish efficiency, German innovation and British market understanding
IT remains a driving force throughout the European banking industry, especially in challenging economic times. And as financial institutions in different European countries cater to very different needs, a pan-European approach to implementing new IT solutions can be extremely beneficial. For example, successful financial services providers can benefit from combining Spanish efficiency with German innovation and British market understanding. Neutral third-party partners, working closely internationally as close partners to the bank’s IT and technical departments, can also play an important role.
Click here to order the survey
Source
“Trends in the banking industry in 2009: the effect of IT on business success during an economic crisis”
Author: Hassan Hosseini, Pierre Audoin Consultants (PAC) GmbH, Munich
Published by GFT Technologies AG, Stuttgart
© GFT AG