NEW YORK (Reuters) – The $1 trillion invested in traditional banks around the world over the past three years, with the improvement of technology that has not yet been delivered, the revenue growth that had been expected, according to a Company report released on Thursday.
FILE PHOTO: The Canary Wharf financial district is seen on top of a residential roof in London, england, May 7, 2019. (REUTERS photo/Hannah McKay/File Photo
The consultancy has analysed more than 160 of the biggest retail and commercial banks in 21 countries, in order to determine whether or not the person who has the most improved technology to achieve better financial performance.
It turned out that the banks that had to be the most-advanced digital, the most profitable and the most valuable, but the fact that the increased profitability was driven by the need to lower costs, the growth in revenues and earnings.
Banks had hoped that by creating better digital products and experiences for customers that they could have achieved the same, fast user growth and revenue as the new, tech-savvy competitors or a large technology firms, Alan McIntyre, senior managing director at Accenture and head of its global banking practice, said in an interview.
“It’s a great digital offering, it is not enough to get customers,” McIntyre said. “If it doesn’t change soon, the industry will end up looking more like a utility.”
The study comes as the well-established banks continue to spend enormous sums of money to finance the overhaul of their legacy it systems and provide additional electronic services to our customers.
Banks are attempting to respond to the growing expectations of the customers, who are accustomed to user-friendly products and services that may be offered by the consumer, the technology companies and the loss of the services of the participants.
We didn’t discount the return on technology investments, but noted that it would reduce the cost, it was just the first step, the banks need to be more competitive in the ever-changing landscape.
The move to digital is likely to reduce the banks ‘ income from fees and charges, as customers have to pay for the advice or a transaction, according to the report.
It suggests that moving forward, banks will focus on how to create more income, because of the risks associated with the implementation of the balance sheet, such as interest rate, credit, or the creation of new revenue streams in areas that are not within their traditional domain.
Reporting by Anna Irrera; editing by Diane Craft