In response to a examine by the British analytics software program supplier SAS, the Covid-19 pandemic has accelerated digital adoption by 89% of British banks by 5 years.
The examine surveyed a mixture of UK challengers and conventional banks about how their IT infrastructure, processes and priorities have modified through the pandemic.
It discovered that conventional banks noticed a notable surge in new expertise adoption, with 93% reporting a five-year accelerated digital adoption.
This compares to 87% of challenger banks, which are sometimes digital first and extra simply capable of undertake newer applied sciences. This was mirrored within the survey, which discovered that 9 out of 10 respondents disagreed that challenger banks wanted a brand new platform to compete with conventional banks.
UK challenger banks embody Monzo, Starling, Bunq, Revolut and others.
The report additional finds that 84% of banks consider conventional banks will drive digital adoption and never return to outdated methods after the pandemic.
The report recognized a number of the refined variations within the expertise priorities of challenger banks and conventional banks.
For instance, 65% of challenger banks see a extra personalised expertise as a notable distinction in comparison with 53% of conventional banks. Moreover, 65% of challenger banks consider knowledge governance is a aggressive benefit, in comparison with 33% of conventional banks.
Synthetic intelligence and machine studying are nonetheless seen as essential instruments for gaining a aggressive benefit by 53% of conventional banks, in comparison with 39% of challenger banks. On this regard, 83% of all respondents indicated that investments in knowledge analytics could be “vital” over the following three to 5 years.
Johnny Steele, Head of Banking at SAS UK & Eire, mentioned: “Whereas conventional and difficult banks have been fast to speed up their expertise adoption through the pandemic, their priorities stay broadly the identical. As issues stand, they are going to basically use the brand new expertise to double the aggressive benefits they have already got.”
The examine additional finds that 61% of banks cite safety and compliance considerations as the highest barrier to cloud adoption. In the meantime, 87% of conventional banks see the combination of legacy techniques as the primary impediment.