Retail banks are generally enthusiastic in terms of increasing their infocomm technology investments (ICT), according to a recent study by market intelligence company Kable.
The survey of 136 retail banks found that 39 percent of the respondents plan to increase their overall ICT budgets this year, which is an increase of 20 percent as compared to 2013.
Those who planned to increase their ICT investment were found to be looking at solutions that will improve their core infrastructure. For instance, the survey revealed that retail banks were inclined to invest in data centres. Doing so will not only help them better manage the exponential growth of customer data, but also ensure that they have better storage and speedier access to information. Retail banks were also found to be spending more on cloud services to lower operating costs, improve scalability and ensure greater processing capabilities, said Kable.
Besides that, retail banks were taking a keen interest in various business intelligence solutions. This is because such solutions will help them uncover competitive insight from the customer data that resides in their core banking, ledger and other systems, reasoned Kable.
Mobility is another popular area of investment. The survey found that retail banks were looking to develop mobile apps and find ways to creatively and effectively use mobile devices to improve customer service and productivity.
According to Kable, retail banks are choosing ICT providers based on their competence in providing disruptive technologies at a lower cost. ICT vendors should thus think about pricing their solutions right to tap on the opportunity presented by retail banks' willingness to spend.
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