Bank spend on innovation set to soar

Bank spend on innovation set to soar

Financial institutions the world over are raising their innovation spend significantly in a desperate attempt to fend off the threat to the established hegemony from technology companies, telcos, and emerging startups, according to fresh data from Efma.

To combat the perceived threat from the likes of Google, Apple and Facebook, 84% of 100 banks polled by Efma, on behalf of Infosys, say they plan to increase investment in innovation spending over the next year. Sixty-one percent of the sample say they have an innovation strategy, with 26% planning to invest in startups.

Almost half have set out plans to become 'innovation leaders' in their respective markets, says Efma, while 38% are content to be 'fast followers'.

Channels continues to be the area attracting most investments, with the shift to digital reflected in the importance attached to mobile (88%), big data (67%) and social (63%).

In the mobile realm, payments and services on multiple devices are the principal goal. For the online channel, automated account origination and personalisation of marketing offers are considered important by 70% and 59% of banks respectively.

Comments: (2)

A Finextra member
A Finextra member 29 October, 2014, 12:42Be the first to give this comment the thumbs up 0 likes It is about time some banks have decided to break away from the way they have always behaved. This new approach of doing creativity on their own is significant. They will have success and they will have failures. The important message they are doing something under their control not the old way of the way they used to do things. Service providers wake up.
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 30 October, 2014, 14:42Be the first to give this comment the thumbs up 0 likes

Just when tech cos are toning down their fin services ambitions or bungling them altogether; TELCOs are looking over their shoulders to see which terrorist organization names itself after their products; and an august consortium of retailers can't even protect their pilots from data breach. It's amazing to see such sluggishness in one part of an industry that has another part for whom even light traveling thru' bends slows down transactions too much.