Technologies

COVID-19 amplifies bank collapse

[ad_1]

Two-thirds of banking executives believe that technologies such as artificial intelligence and machine learning will have a major impact on global banking in the next five years, according to a global survey conducted by the Economist Intelligence Unit on behalf of Temenos.

Forty-five percent of respondents say their strategic response to COVID-19 is to build a “true digital ecosystem” integrating homegrown digital services and third-party offerings. Seventy-seven percent said unlocking the value of AI would be the “key differentiator” between winning and losing banks, while improving the customer experience through better personalization would be the most valuable use of AI (28 percent).

“Banks have been under enormous pressure from new competitors, ongoing regulation and slowing profit growth – these pressures have intensified as a result of the pandemic,” said Max Choward, CEO of Temenos. “The report highlights that senior banking executives believe new technologies such as AI will have the biggest impact ]on]banking in the coming years.

==

==

“Like [digitisation] banking continues, these new technologies can help banks fend off competitors and gain a competitive advantage.”

Digital regulation was seen as the second most impactful trend (42 percent) in the industry after technological change, with respondents seeing it as a “game changer” for the development of open banking in certain regions and the prospect of non-traditional competitors entering the banking space. sector.

However, the entry of neobanks was a minor concern (20 percent) due to their inability to reduce savings or lending volumes significantly.

"Retail, corporate and private banks were already under pressure to rapidly adopt new technologies and change their cultures to compete with the big technology firms and payments players and deliver a compelling digital experience," said Mr n Chuard. "Now that digital banking is growing as a result of the coronavirus crisis, this task is more urgent than ever."


[ad_2]

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *