COVID-19 supercharges bank disruption

Two-thirds of banking executives believe that technologies like artificial intelligence and machine learning will have a major impact on global banking in the next five years, according to a global survey conducted by the Economist Intelligence Unit on behalf of Temenos.

Forty-five per cent of respondents say their strategic response to COVID-19 is to build a “true digital ecosystem” integrating self-built digital services and third-party offerings. Seventy-seven per cent said that unlocking the value of artificial intelligence would be the “key differentiator” between winning and losing banks, while improving user experience through better personalisation would be the most valuable use of artificial intelligence (28 per cent).

“Banks were under huge pressure due to new competitors, ongoing regulation and slowing profit growth – these pressures have intensified as a result of the pandemic,” said Max Chuard, CEO of Temenos. “The report highlights that senior banking executives believe that new technologies such as AI will have the greatest impact ]on] banking in the coming years.

“As the [digitisation] of banking continues, these new technologies can help banks fend off competitors and gain competitive advantage.”

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Source: COVID-19 supercharges bank disruption – InvestorDaily