A third of retail banks in Europe, Middle East and Africa say their current IT systems constrain their ability to deliver on strategic promises.
This is according to research conducted among 23 banks in 10 countries by business software solutions group SAP. Three of SA's big four banks participated in the study.
However, the study also shows that 90% of banks surveyed expect that in three years IT will sufficiently support, or be a key driver of, strategic advantage.
Lloyd Chisholm, financial services director at SAP Africa, says the retail banking sector has thrown off the cost-cutting approach of the late 1990s in favour of a growth-led strategy.
"The major challenges in retail banking are generating growth, cutting operating costs and being quick to market," Chisholm says. "The problem is that many banks have inflexible systems and disconnected departmental silos, which provide little collective insight into the needs of their customers."
He says banks' operating models have to change radically to achieve true customer-centricity and he forecasts strong demand in the industry for standard, flexible software platforms that cover core banking processes comprehensively.
"This will be focused towards better risk management and achieving a closed-loop customer relationship."
SAP anticipates long-term strategic advances with new technology platforms, including faster and more cost-efficient integration of IT and operations during potential mergers.
The study shows that only 8% of banks currently achieve good to excellent customer-based process management, although 90% expect improvements in the next three years.
While only 22% have established consistent processes for the collection, storage and retrieval of customer data, 61% expect to achieve better business intelligence capabilities in the next three years.
Share
