Two-thirds of banking executives believe technologies such as artificial intelligence and machine learning will have a major impact on global banking over the next five years, according to a global survey by the Economist Intelligence Unit on behalf of Temenos.
Forty-five percent of respondents say their strategic response to COVID-19 is to create a “true digital ecosystem” integrating self-built digital services and third-party offerings. Seventy-seven percent said unlocking the value of artificial intelligence would be the “key differentiator” between winning and losing banks, while improving user experience through better personalization would be the most common use. valuable use of artificial intelligence (28%).
“Banks were under enormous pressure due to the arrival of new competitors, ongoing regulation and slowing profit growth – these pressures have intensified due to the pandemic,” said Max Chuard, CEO of Temenos. “The report highlights that senior banking executives believe new technologies such as AI will have the greatest impact on the banking industry in the coming years.
“Like the [digitisation] As banking development continues, these new technologies can help banks fend off competitors and gain a competitive advantage.
Regulation of digital technology is seen as the second most impactful trend (42%) in the sector, behind technological change, with respondents seeing it as a “game changer” for the development of open banking in some regions and the prospect of non-proliferation of digital technologies. traditional competitors entering the banking sector.
Despite this, the arrival of neobanks is a minor concern (20%) due to their inability to significantly reduce savings or loan volumes.
“Retail, corporate and private banks were already under pressure to rapidly deploy new technologies and change culture to compete with large technology companies and payment players and deliver an engaging digital experience,” said Mr. Chuard. “Today, as digital banking services proliferate due to the coronavirus crisis, this task is more urgent than ever. »
