Bank customers frustrated; banks investing in tech, reports say

THE TOP REASON banks will invest in technology in 2018 is to strengthen competitive positioning and build market share, according to Turner Little's analysis of Ernst & Young's Global Banking Outlook 2018 report. / COURTESY TURNER LITTLE
THE TOP REASON banks will invest in technology in 2018 is to strengthen competitive positioning and build market share, according to Turner Little's analysis of Ernst & Young's Global Banking Outlook 2018 report. / COURTESY TURNER LITTLE

PROVIDENCE – Two recent reports on bank customers and banks show that customers and banking institutions are operating on different wavelengths in terms of their expressed needs and objectives.

“Revolution of Evolution,” a report released by Starling Bank, shows that bank customers are fed up with four banking attributes: unclear language and charge; complicated products that don’t fit their needs; processes and technologies that take too long; and the superior or unhelpful attitudes by banks.

A different report, “Global Banking Outlook 2018” released by Ernst & Young, shows banks intend to focus on technological fixes for a mostly different set of problems, according to Turner Little, which analyzed the report.

The EY report includes a survey of 221 financial institutions across 29 markets. According to the report, global bankers are positive about their ability to improve their financial performance in 2018.

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The EY report says the highest priority for global banks – at 89 percent of respondents – is to enhance cybersecurity and data security. Following closely, 85 percent of global banks say they will prepare to implement a digital transformation program in 2018.

Eighty-three percent of respondents intend to recruit, develop and retain key talent in 2018, and 82 percent plan to gain efficiencies through technology adoption.

Lower priorities include optimizing the balance sheet (78 percent), meeting compliance and reporting standards (77 percent) and improving risk management (77 percent).

And 67 percent of respondents said investment in technology will help them expand their ability to acquire, engage and retain customers.

James Turner, managing director of Turnerlittle.com, said, “Embracing digital innovation will provide banks with the key to reach their goals in 2018 and to appease fed-up consumers. It’s time to move with new advances, rather than wasting energy, money and custom fighting the tide.”

According to the Global Banking Outlook, about half of companies intend to invest in artificial intelligence, augmented and virtual reality, cloud technology, cryptography and cybersecurity technology, and identification software based on biometrics.

Ernst & Young, based in London with offices all over the world including Providence, provides assurance, tax, transaction and advisory services.

Mary Lhowe is a PBN contributing writer.

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