The banking sector will up its IT spend to an all-time high in 2017 as the gap between tech-savvy and Luddite lenders widens, according to a report released today.
Embracing data and open banking are top priorities for banks the report by consultants Temenos and Capgemini revealed.
The focus on technology comes a week after it was revealed HSBC had closed a quarter of its branches over the last two years and the Co-operative Bank had shut over half of its high street outlets.
Meanwhile the gap between technology leaders and technology laggards expected to widen to unprecedented levels, the widest since this banking survey was launched nine years ago, the survey of 235 senior bankers revealed.
If you can't beat them, join them is the mantra revealed by the survey. Many lenders have agreed partnerships with fintech challengers.
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"We are not surprised that banks are placing much more focus on data," said Ben Robinson, chief strategy and marketing officer at Temenos.
"What is more surprising is that respondents see less of a threat from external players, suggesting they see a path through open banking to take advantage of the innovation coming from the fintech sector to ward off the threat from internet platforms."
Anirban Bose, head of global banking and capital markets at Capgemini added:
With the potential to turn disruptions to business opportunities, open banking has evolved from a chief investment officer/chief technology officer discussion and is now a chief executive and board of directors level topic.