13 Feb Invigorating Banking Survey
61% of global respondents agree that core banking replacement needs to take place in three to five years.
After years of focus on the front office, mobile and channel, banks agree that the issue of core banking migration for the benefit of true modernisation can no longer be ignored.
This is one of the striking results of the ‘Invigorating Banking’ survey, which has recently been conducted in co-operation with Finextra.
It also shows that 65% of the respondents agree that their current core technology no longer support its needs.
This survey conducted by Finextra at the end of 2014 targeted financial institutions worldwide to take a snapshot of banks’ efforts to retain or gain their customers’ business and loyalty in the face of existing IT, operational, cultural and regulatory constraints. Much depends on how they interact with those customers, what services they offer and how they offer them. Most of today’s IT environments cannot support those business wishes adequately – so what to do? Change the core banking platform? Build a new bank from scratch? Put a wrap around the old system and focus on the front end? How to invigorate your bank and the dialogue with your customers?
We used a six-point Likert scale to get respondents to show their level of agreement or disagreement with a number of statements about their business grouped under five themes – the perceived need for invigoration, the drivers, customers’ changing demands, what’s blocking progress, and the impact of new entrants to the industry. Throughout the analysis we have paid more attention to those who felt strongly either way, discounting those more neutral respondents who selected slightly agree or slightly disagree.
We received 126 responses from 96 different financial organisations and 38 countries. Where multiple responses came from a single large financial group they were frequently from different geographies or business units — e.g. cards, retail, transaction banking or financial markets. 54% of respondents came from Western Europe, with the remainder spread worldwide. Where regional differences in responses were apparent, this has been noted in the analysis.
Download the copy of the report here
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