Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys and the European Financial Management & Marketing Association (Efma) today unveiled the 13th edition of the annual ‘Innovation in Retail Banking’ report, authored by Jim Marous, publisher of the Digital Banking Report and co-publisher of The Financial Brand. Senior executives from over 1,165 banks and financial services companies from across the world participated in the study
The key inferences in the report state that 14 percent of the respondents – up from 7 percent last year – said their organization’s digital transformation had scaled, and delivering as expected. 64 percent of the respondents believe that pandemic has made them substantially more successful at innovation. Overall, more than half the respondents continue to rate their organizations’ digital transformation efforts as insufficient, similar to last year’s report. 57 percent of respondents stated that their digital deployment were partial or that digital investments were not delivering as expected.
One of the areas that witnessed significantly accelerated innovation during the pandemic was digital delivery – from onboarding to service, and to engagement. Lockdowns and social distancing meant that banks had to expand the remote service of customers in an unprecedented manner. 44 percent of respondents said they had increased investment in digital delivery by more than 10 percent. Respondents expected enhanced investments in customer experience (78 percent) and channels (72 percent), which are key components of digital delivery, in 2021 and beyond as well.
Read the full report here.
Other highlights of the report include:
Sanat Rao, Chief Business Officer & Global Head, Infosys Finacle, said, “At a time when the banking industry was already struggling to drive profitable growth, the pandemic tested their resilience and agility to the core. The pandemic challenges accelerated digital transformation agendas at banks across the word, and consequently, banking innovation as well. Not surprisingly, digital delivery saw some of the highest action, and this trend is expected to continue in 2022 as well. Also significant in the findings was a higher acceptance among bankers of the dramatic changes that are disrupting their business, as well as the need for sustained, holistic business model innovation to stay relevant.”
John Berry, CEO at Efma, said, “This year has yet again proved that the financial services industry continues its evolution towards digital banking transformation. Even the most innovative players are now facing strong competition from big tech companies and of course fintechs. It is essential that they must continuously innovate in order to stand out from the competition. Customer engagement is still centerstage for future success.”
Jim Marous, Owner and CEO of the Digital Banking Report, said, “This year’s Innovation in Retail Banking report shares the digital transformation progress of financial institutions in the 18 months since the pandemic disrupted banking. Moving beyond pandemic-driven crisis management, financial institutions of all sizes have made significant strides in reimagining the purpose and structure of innovation within banking and are integrating data, analytics, modern technology, and process automation to provide improved customer experiences. The research results shared in this year’s Innovation in Retail Banking report provide a guide for strategic planning and investment prioritization for banks and credit unions globally.”
A non-profit organization created in 1971 by leading banks and insurance companies, Efma is celebrating this year its 50th anniversary. Created by a handful of institutions and counting now a network of 120 financial groups in 133 countries all around the world, Efma is showcasing its resilience in the face of adversity and its essential role in supporting its members to thrive. Our purpose is to support our members and create a strong community based on expertise and skills. Our mission is to provide community intelligence to optimize, innovate and transform by recognizing our members’ best practices and connecting them.
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Learn more at www.efma.com
About Infosys Finacle
Finacle is the industry-leading digital banking solution suite from EdgeVerve Systems, a wholly owned product subsidiary of Infosys. Finacle helps traditional and emerging financial institutions drive truly digital transformation to achieve frictionless customer experiences, larger ecosystem play, insights–driven interactions and ubiquitous automation. Today, banks in over 100 countries rely on Finacle to service more than a billion consumers and 1.3 billion accounts.
Finacle solutions address the core banking, omnichannel banking, payments, treasury, origination, liquidity management, Islamic banking, wealth management, analytics, artificial intelligence, and blockchain requirements of financial institutions to drive business excellence. An assessment of the top 1250 banks in the world reveals that institutions powered by the Finacle Core Banking solution, on average, enjoy 7.2% points lower costs-to-income ratio than others.
To know more, visit www.finacle.com