The report shows that most banks are not planning to curb tech spending in the near future, with cybersecurity being chief among their concerns
NEW YORK, June 13, 2023 /PRNewswire-PRWeb/ -- An annual report from Arizent, parent company of American Banker, an information resource for decision makers in financial services, examines the progress and priorities of digitally driven initiatives at financial institutions. The research shows that tech spending will remain a priority, even amid inflation and a possible recession, with a key focus on cybersecurity.
According to the survey, identifying and dealing with cybersecurity threats, including fraud, ranks first among all challenges financial institutions face in advancing their digital initiatives. Nearly 90% of all respondents classify threats from cybersecurity as a "moderate" or "significant challenge." Not one of the professionals surveyed says this isn't a problem.
Digital initiatives are on the minds of many banking executives, with 42% of respondents expecting technology spending to increase by at least 10% over the next 12 months. Fewer than 10% anticipate a decline in tech spending over the same period.
Banking professionals identify customer-related objectives as the top drivers of their digital banking strategy. Among the digitally driven initiatives prioritized by banking executives are buy now, pay later; real-time payments; fraud mitigation; and real-time data and analytics.
"Banking leaders have come to see their digital transformation as a journey without an endpoint; it's never finished," says Janet King, VP of Research at Arizent. "The ever-changing landscape of technology and the industry itself means that banks and credit unions will likely always be reacting to new tech or new desires from their customers."
The consistent focus on digital initiatives is also driving more banks into the arms of financial technology companies. Three-quarters of bank and credit union professionals say they are likely to partner with or invest in a fintech company over the next 12 to 18 months as they work to move their digital goals forward. Respondents report being more willing to work with fintechs on cybersecurity issues, including secure ID verification and advanced security and fraud alerts, than any other digital priorities.
"More financial institutions than ever are setting down their swords to partner with fintechs," says King. "They see it as a faster and more cost-efficient way of adopting new technologies. As a result, the opportunities for partnerships and customer-centric innovation have never been greater."
Full results from the report are being presented at American Banker's DIGITAL BANKING conference, which takes place June 12-14 at The Boca Raton resort in Florida.
Download the full report here: https://www.americanbanker.com/research-report/feeding-an-insatiable-beast-financial-institutions-prioritize-cybersecurity-and-customer-experience-on-digital-journey
Research methodology
During March and April 2023, Arizent/American Banker collected data online from 200 banking professionals with management-level roles and knowledge of their institution's digital strategy and initiatives. Among respondents, 40% work at community banks, 26% at global or national banks, 18% at credit unions, 16% at regional banks and about 1% at challenger banks.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About American Banker
American Banker empowers banking professionals with unique analysis and insight into the ideas transforming their business and industry. Across its journalism, events, research and benchmarking, it helps drive the way forward through the complexity of business innovation, retail and commercial disruption, technology, regulation, and reform. With a banking community 850K strong, American Banker's transformative content connects leaders online, in person and in print every day.
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance
Media Contact
Janet King, Arizent, 212-803-8500, janet.king@arizent.com
SOURCE Arizent
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