24 June 2018
Visit www.gemalto.com

US banks consider IT top spending priority; shift from branch to mobile evident

06 June 2012  |  9525 views  |  0 Savings house in hands

American banks consider technology investment a top spending priority for the year ahead, with platform simplification the most important IT-related project, according to a KPMG survey.

The poll of over 100 senior executives reveals that, in the face of regulatory reforms and a lacklustre economy, banks are focused on re-examining business models and initiatives that increase operational efficiency and reduce costs.

This means a focus on technology: asked to identify the three areas where their bank would most increase spending over the next year, 58% of respondents say IT, ahead of products or services (37%), acquisitions (32%), and business model transformation (20%).

Among those respondents who have significant cash on their balance sheets, the most likely time frame for investment was this year (39%) or next year (40%), while 21% said 2014 or later.

Platform simplification - IT infrastructure, applications - is the most important IT-related project in the next year for 58%, with mobile payments cited by 39%, using data more effectively for regulatory requirements by 38%, and creating an integrated view of customer accounts by 37%.

Asked to identify the channels commanding the most capital investment from their bank, 38% of respondents cite m-banking and payment platforms for mobile devices, compared to just 24% for purchasing more branches and 23% for online banking.

Judd Caplain, national account leader, banking and capital markets practice, KPMG, says: "The shift away from investing in the traditional branch customer channel to the channels utilising mobile technology is noticeable, and we expect this trend to continue at an accelerating pace."

More generally, 69% of respondents identify regulatory and legislative pressures as the most significant barrier to growth over the next year. To help counter this, most are looking at which types of customers to focus their growth strategy on, with mass-affluent, young professionals and the unbanked the top targets.

Meanwhile, although 32% still consider national banks the biggest threats to their organisation, 28% cite new market entrants such as PayPal and retail outlets like Walmart.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Mobile payments set to reach £591 billion by 2015 - KPMG

Mobile payments set to reach £591 billion by 2015 - KPMG

05 April 2012  |  14994 views  |  1 comments
UK finance sector IT spending on the up as industry optimism improves

UK finance sector IT spending on the up as industry optimism improves

02 April 2012  |  6327 views  |  0 comments
Europe drags down bank IT spending - Celent

Europe drags down bank IT spending - Celent

23 January 2012  |  6284 views  |  1 comments
Global retail banking IT spending on the rise - Ovum

Global retail banking IT spending on the rise - Ovum

13 January 2012  |  8552 views  |  0 comments
Financial services IT spending on the up - Bloomberg survey

Financial services IT spending on the up - Bloomberg survey

23 May 2011  |  7870 views  |  0 comments
US m-banking take-up hindered by security and cost concerns - survey

US m-banking take-up hindered by security and cost concerns - survey

08 April 2009  |  9400 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit iliad-solutions.com/Visit https://secure.vasco.comVisit www.aciworldwide.com

Top topics

Most viewed Most shared
GPS raises £44 million to fund international growthGPS raises £44 million to fund intern...
26633 views comments | 7 tweets | 8 linkedin
Robots save Nordea from GDPR processing nightmareRobots save Nordea from GDPR processing ni...
9388 views comments | 10 tweets | 18 linkedin
BIS: Cryptocurrencies are an environmental disaster that could break the InternetBIS: Cryptocurrencies are an environmental...
8834 views comments | 18 tweets | 23 linkedin
ING and BNP Paribas invest in blockchain-powered trade platform TradeIXING and BNP Paribas invest in blockchain-p...
7301 views comments | 15 tweets | 27 linkedin

Featured job

to GBP £90K base, double OTE (estimate)
London, UK or Europe

Find your next job