GFT Technologies AG hired Pierre Audoin Consultants (PAC), a market analysis and consulting firm for the software and IT service industry, to conduct a comprehensive survey of major banks in eight Western European countries on the importance of information technology for corporate success. The findings of the survey show that IT within banks is seen as still having significant potential. In times of crisis, therefore, it is IT innovation that has the capability to help overcome challenges.

A large proportion of the banks surveyed (36%) currently consider globalisation to be a major challenge, followed by mergers and acquisitions (35%). IT and new technology trends play a preeminent role in coping with the tasks involved.

Cost savings and process efficiency are also deemed to be important issues in boosting competitiveness. At the same time, the respondents conceded that an optimised cost structure and efficient processes alone are not enough. Sustainable success requires a company to be innovative and it is precisely when it comes to innovation management that major importance is attributed to IT.

According to the European banks involved in the survey, the potential to be gained from IT has not yet been fully exploited. There is ground to be made up, both in terms of operational and innovation-related issues. In this context, the issues surrounding industrialisation of the banking system (46%), Web 2.0 (46%) and the overhaul of core banking systems (42%) were described as very important by respondents.

According to the results, IT leads the way in enabling companies to cope with current challenges. However, in this current survey, the research institute points out that close cooperation is required between IT departments and other areas of the bank. Based on years of analysis, PAC has established that successful financial institutions have developed their inhouse IT departments into efficient service providers who work with other business areas as equal partners. Developing the consultancy approach of inhouse IT makes it possible for better use to be made of its strategic potential.

Miguel Reiser, Head of Business Development in GFT Technologies AG’s Services Group, said of the findings: “The survey clearly shows that IT is a driving force behind corporate success, particularly in difficult times. In view of the current challenges, financial institutions constantly have to offer their customers new financial products to differentiate themselves from the competition. At the same time, banks have to increase their efficiency and cut their costs. IT can assume an important role in all these tasks, but IT innovations are particularly indispensable in a crisis.”

The survey was aimed at major banks in eight western European countries, with the emphasis on retail banking. In all, representatives of business and IT depart-ments in more than 50 banks and 100 individuals took part in the interviews.

PAC is a global market research and strategic consulting firm for the software and IT services industry (SITSI). PAC helps IT vendors, CIOs, consultancies and investment firms by delivering analysis and advice to address a range of growth, technology, financial and operational issues. PAC publishes a wide range of off-the-shelf and customized market reports in addition to PAC’s suite of strategic consulting and market planning services. Based on more than 30 years of experience in Europe, and with over 160 professionals in 16 offices, PAC delivers global insights into various markets on all continents.