17 December 2017
visit www.avoka.com

Bank CIOs put AI, APIs and legacy modernisation at top of transformation agenda

30 October 2017  |  11804 views  |  2 Dollar note jigsaw

Banking and investment services CIOs are increasingly convinced that their old business models and existing value propositions will not be sustainable in the future, according to a survey from Gartner.

Gartner’s 2018 CIO Agenda Survey gathered data from 3,160 CIO respondents in 98 countries and across major industries, including 354 banking and investment services CIOs.

"Digital transformation and its related technologies such as APIs are more important for banking than for other industries,” says Pete Redshaw, managing vice president at Gartner. “Banks and other banking and investment services organisations clearly recognise that the status quo is not sustainable, and they must disrupt themselves before it is done to them."

When it comes to strategic business priorities, the survey found that digital business/digital transformation is more important for banking (first priority for 26% of respondents) than for all industries (17%).

In terms of investment priorities, banking CIOs rank AI, APIs and legacy modernisation as top of their agenda, with blockchain and Internet of Things failing to make the cut.

"These priorities point to a continuing tension between two opposing forces," saysRedshaw. "On the one hand, there is a need to rapidly transform the business, while, on the other hand, there is the innate inertia that arises from a huge IT estate that supports a heavily regulated industry."

Planned additional spend on digitalisation/digital marketing is also much more prominent in the banking and investment services sector (22%) than the all-industries average (12%).

Says Redshaw: "This is an industry that recognises that a firm must become truly digital - in culture, value and technology - if it is to stand a chance of surviving and thriving."

Comments: (2)

Robert Zahm
Robert Zahm - Accenture - | 31 October, 2017, 09:59

Would really like to see someone take the idea of publishing APIs beyond the simple availability step to speak to how the publisher will make money.  Sure, publishing APIs to a retail bank's website will remove the need for screen scraping by data aggregators, but what does that do for the bank holding the account?  What new "hybrid" products can banks offer that leverage each other's APIs?  Seems to me that w/o thought about new revenue, simply adding another layer to the technology stack simply adds another layer of code to be maintained.  Now, if you put the APIs in the context of a software refresh, revising the way in which the bank manages / maintains / integrates its own software, there might be something.

1 thumb up! 1 thumb up! (Log in to thumb up)
Jean-Paul Carbonnier
Jean-Paul Carbonnier - CarboKinetic - London | 31 October, 2017, 11:29

In terms of how banks and/or vendors are going to make money from PSD2 and APIs - there are lots of ways. See this article that I wrote a while back.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
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

UK FS firms invest in data analysis and process automation

UK FS firms invest in data analysis and process automation

11 July 2017  |  6726 views  |  0 comments | 6 tweets | 8 linkedin
Capital markets jobs on the line as banks raise AI spend

Capital markets jobs on the line as banks raise AI spend

07 March 2017  |  15830 views  |  0 comments | 19 tweets | 29 linkedin
Bank IT spending in Asia/Pacific set for growth

Bank IT spending in Asia/Pacific set for growth

10 February 2017  |  4603 views  |  0 comments | 6 tweets | 5 linkedin
Bank CEOs fret about ROI as startups drive IT arms race

Bank CEOs fret about ROI as startups drive IT arms race

30 November 2016  |  9472 views  |  0 comments | 17 tweets | 21 linkedin
Legacy banking vendors in fintech firing line

Legacy banking vendors in fintech firing line

03 May 2016  |  10963 views  |  5 comments | 30 tweets | 37 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.thomsonreuters.infovisit www.ebaday.comvisit www.response.ncr.com

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
10650 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
10297 views comments | 18 tweets | 36 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
7686 views comments | 10 tweets | 10 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7349 views comments | 19 tweets | 22 linkedin
hands typing furiouslyReshaping Customer Engagement & Da...
6772 views 0 | 4 tweets | 2 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job