Tuesday, 31 October 2017 01:28

Banking, investment services focus turns to digitalisation: Gartner

By

Banking and investment services chief information officers are increasingly convinced that their old business models and existing value propositions will not be sustainable in the future, according to a new global survey.

The survey by analyst firm Gartner reveals that digital transformation and its related technologies, such as APIs, are more important for banking than for other industries.

According to 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 Gartner survey found that digital business/digital transformation is more important for banking (first priority for 26% of respondents) than for all industries (17%).

And just behind digitalisation on 25% , growth/ market share is a further key priority, followed by complementary focus areas of profit improvement and customer focus (12% and 11% respectively).

According to Gartner, banking and investment services CIOs also place a relatively high priority on the globalisation of their businesses (7%), a priority which does not make the top 10 at all for the all-industries average.

Gartner also says geographic expansion is clearly important for a business that is easier to scale over physical distances using electronic movements of money, and seeking higher growth in emerging markets.

In response to the question ‘Which technology areas do you think are most important to helping your organisation differentiate and win (achieve your mission)?’, BI/analytics topped the list with banking sector CIOs at 26% followed by digitalisation/digital marketing at 21%.

And Gartner notes that in terms of differentiating technologies, four categories stand out when compared to other industries:

  • Artificial intelligence (AI) is seen as more differentiating (8%) for banking than the all-industries average (5%).
  • The combination of application programming interfaces (APIs) at 4% and omnichannel/multichannel at 3% are not especially high, but they are not present at all in the all-industries top 10.
  • Legacy modernisation is a top 10 item for the banking industry, but not present in the all-industries list.
  • The Internet of Things (IoT) is a top-10 item for all industries (6%), but is not present for banking and investment services.

"These priorities point to a continuing tension between two opposing forces," said Redshaw.

"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."

CHIEF DATA & ANALYTICS OFFICER BRISBANE 2020

26-27 February 2020 | Hilton Brisbane

Connecting the region’s leading data analytics professionals to drive and inspire your future strategy

Leading the data analytics division has never been easy, but now the challenge is on to remain ahead of the competition and reap the massive rewards as a strategic executive.

Do you want to leverage data governance as an enabler?Are you working at driving AI/ML implementation?

Want to stay abreast of data privacy and AI ethics requirements? Are you working hard to push predictive analytics to the limits?

With so much to keep on top of in such a rapidly changing technology space, collaboration is key to success. You don't need to struggle alone, network and share your struggles as well as your tips for success at CDAO Brisbane.

Discover how your peers have tackled the very same issues you face daily. Network with over 140 of your peers and hear from the leading professionals in your industry. Leverage this community of data and analytics enthusiasts to advance your strategy to the next level.

Download the Agenda to find out more

DOWNLOAD NOW!

Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments