The Bank Manager Survey examines how bankers think about improving the customer experience, creating efficiencies and investing in the future.
NASHVILLE, Tennessee., August 30, 2022 /PRNewswire/ — As competitive pressures continue to alter the landscape of financial institutions, the Bank’s Director Technology Survey 2022sponsored by CDW, delves into the technology concerns and challenges facing the bank’s senior executives and board members, and where they have been investing their resources.
Eighty-one percent of respondents say their bank increased its technology budget by 2022, reporting an average increase of 11% compared to 2021. Still, leveraging technology to create a more competitive and efficient organization requires insider knowledge , and nearly half of the directors and executives who responded worry that their bank lacks an adequate understanding of emerging technologies. Additionally, 45% say their bank relies on outdated technology.
“Nearly half of those surveyed point to large, super-regional banks as major threats, and that doesn’t take into account companies like PayPal, Chime and others that are undermining the banks’ business,” he says. emily mccormick, Research Vice President at Bank Director. “The Bank Director’s Compensation Survey 2022, conducted earlier this year, found that tech talent is in high demand. I think we can see a direct connection between the need for in-house expertise and the industry’s ability to meet challenges.” current challenges”.
The 2022 Technology Survey indicates that the majority of banks employ technology-focused senior executives, particularly in the form of a chief information security officer (44%), a chief technology officer (43%), and /or a chief information officer (42%). Few, however, have a chief data officer or data scientist on staff, despite nearly half expressing concern that the bank does not effectively use or aggregate bank data.
The competitive landscape
56% of all respondents see local banks and credit unions as their top competitive threat, followed by large and super-regional banks at 46%. A third worry about competition from big tech companies like Apple, while an equal number worry about competition from digital non-bank business lenders.
Hit-or-Miss in digital applications
Nearly half of respondents say their bank has a fully digital process for opening retail deposit accounts, with a larger share representing larger banks. $1 billion reporting so much. Far fewer respondents report a fully digital process for retail loans, deposits or small business loans, or commercial loans.
Only 25% of directors and executives surveyed say their bank has the tools it needs to effectively serve Generation Z, and half believe their institution can effectively serve millennials. Eighty-five percent say the same about Generation X, and 93% say the same about baby boomers.
All included in the cloud
Eighty-eight percent say their bank uses cloud technology to drive efficiencies internally; 66% use application programming interfaces (APIs), which allow different applications or systems to exchange data. Robotic process automation (32%) and artificial intelligence or machine learning (19%) are used much less frequently.
Three quarters say their board or leadership team has discussed risks or opportunities related to cryptocurrencies or digital assets in the last 18 months. 64% say the same about banking as a service (BaaS), and 69% say the same about environmental, social and governance issues. Cannabis, in the minds of 58%, was most commonly discussed in banks under $5 billion of assets
More than half of those surveyed see technology companies only as suppliers, rather than collaborating with or investing in these companies. Thirty-nine percent, mainly representing banks of more than $1 billion in assets, they say that their institution has collaborated with technology providers on specific solutions. Twenty percent have participated in a hedge fund that invests in technology companies and 11% have invested directly in one or more of these companies.
The survey includes the views of 138 independent directors, CEOs, COOs and senior technology executives from the US banks below. $100 billion in assets. Complete survey results are now available online at BankDirector.com.
About the bank manager
Bank Director reaches out to the leaders of the institutions that make up the US banking industry. Since 1991, Bank Director has provided board-level research, peer insights, and in-depth board and executive services. Designed for banks, Bank Director extends beyond the boardroom by providing timely and relevant information through bank manager magazine, board training services, and the financial industry’s premier event, Acquire or Be Acquired. For more information please visit BankDirector.com.
IT today creates business potential, drives growth and innovation, but it’s not always easy to keep up with the latest IT advances when you’re carrying a heavy load. CDW gets it. CDW Financial Services partners with leading technology companies to bring you the next-generation IT solutions you need to succeed and lighten your load. For more information on CDW, visit www.cdw.com.
For more information, please contact Bank Director Marketing Director, Deahna Welchera [email protected].