The 2023 report indicates that customer experience innovation continues to be the top priority, but financial institutions need to look beyond just tech adoption to stay competitive and grow
NEW YORK, Oct. 2, 2023 /PRNewswire-PRWeb/ -- A new report from Arizent, the parent company of American Banker, a leading information resource serving senior executives in financial services, publishes its Innovation Readiness 2023 research report. Sponsored by IT consulting and digital services provider SoftServe, the findings indicate that integrating technology is no longer enough for financial institutions; establishing a tech-driven organizational culture is imperative for survival, and offers opportunities for banks and credit unions to grow.
When it comes to innovation, the research shows that customer experience continues to be the top priority for banks, with 92% of respondents ranking it among their top three, compared to 78% last year. The report also highlights that fintech and startup investments and acquisitions are on the rise, and one of the most common innovation programs currently in use, with 31% of banks reporting that they have a fintech or startup investment program compared to 13% saying the same last year.
"Banks are recognizing the need for strategic alignment, which goes beyond just tech adoption," says Janet King, VP of Research at Arizent. "This means financial institutions need to shift toward a tech-driven organizational culture — one that prioritizes innovation, aligns it with technology and leverages fintech collaborations."
Additionally, only 40% of banks strongly agree that their organization's technology roadmap (including investment strategies) is aligned with key areas of innovation, indicating a potential missed opportunity for many. Despite substantial investment in tech and innovation programs, a gap persists between some of the technologies that financial institutions see as critical and the tech they have actually implemented, primarily with AI and cloud computing.
Survey respondents also reveal that culture and resourcing are the primary barriers to innovation at financial institutions. Two in five cite limited resources (limited recruiting or in-house expertise, limited budget or not enough time) as the primary block for efforts to drive innovation.
"Addressing this shortcoming demands a fundamental shift in company culture," continues King. "Deliberately pursuing mergers and acquisitions, fintech investments and joint ventures can be a successful strategy, but it requires the organization to be ready to collaborate effectively in these new relationships."
To read more details about the innovation journeys of financial institutions — including areas of focus, plans for AI, opportunities and challenges — download the full report here: https://www.americanbanker.com/research-report/the-key-to-finance-innovation-moving-beyond-tech-to-tech-driven-culture
Arizent, the parent company of publications including American Banker, conducted an online survey in July 2023 of people who work for financial institutions (credit unions and banks, not financial technology companies) and insurance companies or carriers. A total of 179 U.S.-based respondents completed the survey, of which 110 are financial institutions and 69 are insurance companies or carriers. Of the 110 financial institutions surveyed, 77% are banks and 23% are credit unions.
For more information on this survey or other Arizent research, contact:
Vice President, Research
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.
About American Banker
American Banker is the essential resource for senior executives in banking and financial services, keeping its users updated on vital developments and focusing sharply on their most important concerns — innovation, transformation, and disruption; technology, regulation, and reform. Financial industry professionals turn to American Banker, every day and throughout the day, to stay maximally informed — drilling down on complex issues, keeping up with breaking news, and downloading research and data.
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