Wednesday, 2 November 2016

Digitization and Disruptive Technologies Spurring Banks to Invest in New Business Models

    




By Tricitynews Reporter
Chandigarh 02nd November:-  Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: INFY), and Efma, a global not-for-profit organization today launched the eighth annual study of ‘Innovation in retail banking’. The research revealed that 77 percent of banks regard the threat from technology companies, start-ups, retailers and/or telecom players as high or very high. Over half now consider the threat from technology companies and start-up challenger banks as significant.
However, the research, in which 158 banks from 56 countries participated, showed that banks have largely embraced digitization and are aggressively adopting new technologies in order to innovate. The proportion of banks with an innovation strategy has increased to 74 percent in 2016, from only 37 percent in 2009. In addition, banks are now more likely to collaborate with startups in order to stay competitive, with nearly three quarters (73 percent) seeing them as the best way to leverage new technologies.
Vincent Bastid, CEO, Efma said that this year’s global banking study shows that banks have resolutely turned to start-ups to drive their own digital transformations. However, banks are being held back by old legacy systems and are still divided on where and how much to invest. Banks should think globally and embrace new ways of doing business. 
Sanat Rao, Global Head of Infosys Finacle, EdgeVerve said that changing customer preferences, rapid evolution of technology and pressures from outside of the traditional banking world are accelerating a major transformation of the banking industry. The confluence of these forces is putting digitization at the center of technology renewal, enabling multi-channel touch-points for superior customer service. From the research findings and customer interactions, it will likely be the development of open API’s, AI and block chain that shall cause the next big change in banking.
                             


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