When it comes to digitization, retail banking is a laggard. This is shown in a study by the Berlin cloud banking platform Mambu and the Financial Times Focus.
According to the study, banks must continue to develop rapidly in order to avoid being displaced by technology-savvy competitors.
One reason for this is BigTechs such as Amazon and Google, which 74 percent (EMEA region: 71 percent) of bank managers expect to capture the largest market share in the banking sector in the next five years.
Transformation issues
67 percent of bank managers expect to lose market share within the next two years if they do not digitally transform (EMEA region: 69 percent). 53 percent recognize that they may miss their transformation goals. 58 percent even expect their company to disappear from the market in the next five to ten years.
The study shows that there is a certain fear of replacing old systems with more modern ones. Managers see this as the biggest obstacle in 44 percent of cases. In second place is the corporate culture, which is not agile enough for a new business model (43 percent). The third reason given by respondents is that short-term profits are preferred at the expense of other goals.
The corona pandemic, on the other hand, was the biggest driver of digitization (60 percent). This was also accompanied by changes in customer expectations of products and services (54 percent). In third place among the biggest accelerators of digitization, managers cited the need for new revenue streams in order to expand.
In detail, with further information and graphics in the Bank Blog, the leading Internet magazine for professionals and managers in the financial industry. Simply click here.
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