78% of bankers believe that platformisation of banking will steer the market according to an in-depth survey released today by Temenos

Retail bank executives are reviewing their digital strategies, with 61% developing niche propositions and others, to varying degrees, opening up and giving access to new third parties.  Banks are now more concerned with technology-driven trends than they are by regulation according to an in-depth study released today by Temenos, a banking software company. Although banks are concerned about losing business to new payment players, including the threat posed by Google, Apple, Facebook and Amazon (collectively known as GAFA), they already have the trust, the data and the connections that the fintech newcomers need.

The report explores one central theme: ‘Whose customer are you? The reality of digital banking’. The report, the fifth in a series conducted for Temenos by the Economist Intelligence Unit (EIU), offers a global investigation into the strategic concerns of retail banking executives. It highlights that, as the banking world moves towards the implementation of open banking, all stakeholders need to co-operate to deliver the user experience customers want while keeping their money and data safe.

David Arnott, Chief Executive Officer at Temenos, stated: “Banking has reached a watershed moment with changing customer behaviours, disruptive new technologies and a dramatic increase in competitors from within and outside of banking. The most enlightened banks understand that to become truly digital they need to update their systems front-to-back. This will fulfil their business need for product agility; they can offer the right products, over the right channel, and at the right time. Technology, as the report notes, is now the enabler, which will empower banks to build digital ecosystems and capitalize on the open banking opportunity. IT renovation is key to banks’ strategy and, indeed, their very existence; as they will need to redefine their business models in the new API economy.”

Renee Friedman, the editor of the report from the Economist Intelligence Unit, added: “Although the banks may benefit from the fintechs’ missteps, they must remember that the trust customers have in their bank will mean little if it cannot provide the services that accommodate their lifestyle needs.”