Start-Ups Play a Major Role in Digital Transformation of Banks: An Infosys Finacle-Efma Research Report
BANGALORE, INDIA: Infosys Finacle-Efma Research unveils a latest report on the threat of technology on banks and finds 77 percent of them considering it as major threat. The research report of 158 banks from 56 countries finds 74 percent of the banks have embraced digitization in the current fiscal year compared to 37 percent in 2009.
Key Findings of the Report
Banks are collaborating with new start-ups (41 percent) to leverage latest technology and advance to digitalization. The report states that 73 percent of the banks consider innovative start-ups as the major foot-hill to access disruptive technology.
The survey further finds legacy technologyas the major hurdle in transforming to digitalization. The proportion of banks accounting for innovation investment has reduced to 78 percent in the current fiscal year compared to 84 percent in 2015. The banks consider analytics and big data (79 percent) as the major technology for adopting digitalization followed by mobility and wearable (75 percent). The report further finds the demand for open payment systems will embark the growth of API technology in future.
“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 blockchain that shall cause the next big change in banking," says Sanat Rao, Global Head of Infosys Finacle, EdgeVerve.