Revenue set to take precedence over regulation for banks in 2014
Research by analysts at Ovum has found that 2014 will see a shift in retail banks' focus away from regulation and towards revenue.
Research by analysts at Ovum has found that 2014 will see a shift in retail banks’ focus away from regulation and towards revenue.
Customer-centricity will become foremost, backed by larger IT investments, particularly towards their online and mobile channels.
Commenting on the findings, Daniel Mayo, practice leader of financial services technology at Ovum, said: "Retail banking has been undergoing a structural shift since the financial crisis, the repercussions of which continue five years later,"
"However, the sector now appears to be moving into the next phase, driving a new set of priorities or strategies, with a focus on revenue growth, and making customer-centricity key."
The report revealed that while reduced expenditure and regulatory compliance will remain vital, retail banks must focus on providing sustainable returns for their stockholders.
Mayo continued: "Despite economic headwinds, IT spending in retail banking will see strong growth, with online and mobile channels being the top investment areas."
This move will reflect banks’ desire to strengthen their digital offering as part of a multi-channel offering, with the aim of prioritising customer experience and favour client-facing processes
Key technology shifts are forecast by the to occur primarily in the areas of analytics, set to be increasingly incorporated into processes at an operational level, as well as risk, operations and marketing.
Ovum claims this renewed sales channels differentiation drive will be crucial in improving both the efficiency and the customer satisfaction of banking interactions.
"This spending will be driven by security enhancements, marketing and self-service capabilities, all of which are geared towards placing the customer at the centre of the retail banking industry," Mayo added.