North American banks are becoming more bullish on tech
Banks in North America have long lagged behind their global counterparts when it comes to adopting modern technology.
But that trend appears to be shifting, according to the latest research from Temenos and The Economist, which finds banks in the region are betting big on technology to modernise legacy systems and compete with non-traditional players.
Nine in 10 North American banks consider technology to be the biggest trend impacting their industry over the next five years, compared to 63% of banks globally.
“The fear of being left behind and missing out on new markets is pushing North American banks towards a greater adoption of disruptive technologies,” comments Nelly Rezny, EVP, Business Solutions Group for the Americas at Temenos.
“Banks in this region are betting big on technology, with the goal of modernising and securing their core infrastructure and personalising customer experience and engagement.
“Tech investments are also helping banks compete with fintechs and non-financial companies, both on banks’ traditional turf and in newer spaces, such as embedded finance, where their competitors have led the way.”
Banks in North America focused on product agility
Economist Impact’s study, commissioned by Temenos, was conducted with the aim of understanding emerging trends in the banking industry.
The final report presents insights from a global survey of 300 executives in retail, commercial and private banking spanning Europe (25%), North America (23%), Asia Pacific (18%), the Middle East and Africa (17%) and Latin America (17%). Interviews were also carried out with industry practitioners to gain further insights.
Interestingly, researchers found product agility and enabling embedded finance are currently bigger strategic priorities for North American banks compared to other regions.
Almost a quarter (24%) of banks in North America, compared to 18% globally, are focusing their technology investments on agile technology delivery (DevOps). More so than any other region, North America’s financial institutions see AI as a valuable tool for customer fraud detection.
What’s more, compared to the global average (26%), a higher proportion (36%) of banks in North America are prioritising moving domestic core banking to the cloud to best utilise emerging technologies and handle the exponential growth of data.
Read the full report: Can disruptive technologies bolster the competitiveness of North American Banks?
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