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Bank Director, the leading information resource for leadership and board members of financial institutions nationwide, today released its 2019 Technology Survey, sponsored by CDW. The survey, which was conducted in June and July 2019, includes the views of CEOs, technology executives and independent directors, and seeks to better understand bank strategies, staffing and budgets around technology and innovation, as well as relationships with legacy core providers and newer vendors.
“While most bank executives and directors rate their financial institution’s technology offerings as “adequate,” the intense need to improve the customer experience and create efficiency is driving technology strategies for many leadership teams,” says Emily McCormick, Vice President of Research at Bank Director.
Improving the customer experience is a top objective driving bank strategies around the investment, development and implementation of technology, according to 78% of survey respondents, and 72% indicate an imperative to create a more efficient operation.
“You have to understand the customer to enhance the customer experience,” says Scott Hiemstra, financial services sales director at CDW. Yet, 48% of respondents say their bank’s data analytics capabilities are inadequate, making it more difficult to meet key strategic goals.
Despite the rise of the digital channel, 51% of respondents say the branch is equally important to online and mobile channels when it comes to growing the bank, and more than half indicate they’re upgrading branch and ATM technology.
Other key findings from the survey include:
Technology Pain Points
At 60%, the majority of those responding to the survey say their current core provider is slow to provide innovative solutions or upgrades to their bank, and almost half cite difficulty in implementing new solutions. These are major sticking points when 60% rely on their core provider to introduce innovative solutions.
For 45%, the bank’s technology budget has risen between 5% to 10% for fiscal year 2019. Almost one-quarter report an increase of more than 15%. Responding banks budgeted a median of $750,000 for FY2019.
Where the Money’s Going
In addition to automation, digital enhancements and branch improvements, banks are hiring consultants to supplement in-house expertise (50%), and bringing on additional employees to focus on technology and innovation (43%).
Cybersecurity Top of Mind
Protecting the bank from cyberattacks dominates board technology discussions, according to 96% of the respondents. Many boards also focus on process improvements (63%) and implementing innovative customer-facing technology (46%).
About Bank Director
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through Bank Director magazine, executive-level research, annual conferences and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director is headquartered in Brentwood, Tennessee. For more information, please visit BankDirector.com.
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