Retail banks will be focusing IT investments on driving revenue growth in 2015, with digital channels being a major area of focus.
This is according to new research from Ovum, which has found that almost half of senior IT executives identify supporting revenue growth as one of the top three strategic priorities for the upcoming year.
“The need to grow topline revenue through sales and customer conversion rates is driving investment into digital channels,” said Kieran Hines, practice lead of Financial Services Technology at Ovum. “Due to this, the areas that will see the greatest spending in 2015 are mobile and online banking, with 52% and 51% of banks respectively seeing their budgets grow. Product development will see the largest magnitude of budget increase, with over 17% of banks expecting investment to increase by more than 6%.”
Banks in North America and North Asia have a strong consumer focus according to the survey, whereas this is seen as less of a priority in Western Europe. 21% of banks indicated that greater customisation in digital channels is a top investment priority.
“There is a wide trend of consumerisation in the industry and retail banking is no exception,” added Hines. “Users now expect and demand the same kind of rich, interactive experience they receive from the retail, media and entertainment industries in their banking platform.”
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