The highest priority for global banks in 2018 is to enhance cyber and data security’ with digital transformation coming second, according to new research.
UK and offshore company formation agents, Turnerlittle.com took to investigating the business priorities of global banks in 2018, to better understand what our banks are doing to restore customer faith.
Key findings:
- Consumers cite ‘unclear, complicated language and charges’ as a top frustration in traditional banking.
- The highest priority for global banks in 2018 is to ‘enhance cyber and data security’ – at 89%.
- 85% of global banks will prepare to ‘implement a digital transformation program’ in 2018.
- A lesser priority for global banks is to ‘improve risk management’ at 77%.
- 67% of banks: investment in technology will ‘expand ability to acquire, engage and retain customers.’
Per Starling Bank’s report ‘Revolution or Evolution’, traditional banking consumers are fed up.
Top frustrations with current UK banks include:
- Unclear and complicated language and charges.
- Complicated products that don’t fit with lifestyle.
- Processes and technology that takes too long.
- Banks’ superior or unhelpful attitude.
To clarify findings, Turner Little spent time analysing the report ‘Global Banking Outlook 2018’ released by EY in 2018. Comprising a survey of 221 financial institutions, across 29 markets, the report reveals bankers are positive about their ability to improve their financial performance in 2018.
Turnerlittle.com observed the priorities for global banks in 2018 which were broken down into five main categories: protect, control, grow, reshape and optimise.
To ‘protect’ comes out top. In fact, the highest priority in every category is to ‘enhance cyber and data security’ – at 89%, plainly indicating this is an urgent focus.
Other high priorities include to ‘implement a digital transformation program’ (85%), to ‘recruit, develop and retain key talent’ (83%) and to ‘gain efficiencies through technology adoption’ – at 82%.
Lower priorities include, to ‘optimise the balance sheet’ (78%), compliance and reporting standards’ (77%) and to ‘improve risk management’ – at 77%.
James Turner, managing director of Turnerlittle.com, comments: “It’s clear traditional banks need to embrace digital advances, such as those under the FinTech umbrella, to drive opportunity. Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success.
In fact, it is understood embracing digital innovation will provide banks with the key to reach their goals in 2018 and to appease fed up consumers. It’s time to move with new advances, rather than wasting energy, money and custom fighting the tide.”
Within the next three years, 40-60% of companies will choose to purchase the following digital advances:
- Artificial intelligence.
- Augmented and virtual reality.
- Cloud technology.
- Cryptography/cybersecurity technology.
- Identification software based on biometrics.
Further to this, Turnerlittle.com identified the top five reasons banks will invest in technology this year:
To ‘strengthen competitive positioning and build market share’ is the number one reason banks will look to invest in technology – at 70%. Followed by ‘expand ability to acquire, engage and retain customers’ (67%) and to ‘generate cost savings and operating efficiencies’ (62%.)
Closely followed, was to ‘mitigate growing cybersecurity threats’ (58%) and to ‘drive digital transformation program’ – at 51%.