The Economist Impact study, commissioned by Temenos, highlights a significant trend in the North American banking sector: a growing emphasis on technology as a key influencer in the industry. This shift in focus is evident from the survey results of bank executives in North America.
While historically North American banks have been slower in adopting advanced technologies compared to their global counterparts, this trend is changing. The study reveals that a vast majority (90%) of North American banks now view technology as the most impactful factor for their industry in the coming five years, a perspective shared by 63% of banks worldwide. This change is driven by the aim to compete effectively with fintech companies and non-financial entities, and to expand customer reach.
The report, “Can disruptive technologies bolster the competitiveness of North American Banks?,” also notes a specific interest among North American banks in transitioning their core banking systems to the cloud, more so than banks in other regions. This is reflected in the 36% of North American banks moving to cloud-based solutions, compared to 26% globally. Furthermore, a significant portion (79%) of North American banks foresee multi-cloud strategies becoming a regulatory requirement within five years.
The report highlights the pressure North American banks feel from tech and e-commerce giants like Google, Facebook, and Microsoft. This has prompted a greater shift to cloud applications to leverage emerging technologies, manage data growth, and defend market positions against these new entrants. Collaborations with fintechs and other tech providers are also seen as essential for maintaining agility and competitiveness. Forty percent of North American banks are engaging in sandbox testing with these entities, higher than the global average of 32%.
Read more: https://fintechfrontiers.live/google-pays-bnpl-integration-fuels-2024-surge/
