Published Date: November 04, 2015
Independent research highlights the stark realities for established banks grappling with competition and changing customer expectations
Bangalore and Paris – November 04, 2015 – Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: INFY), and Efma, a global not-for-profit organization promoting innovation in retail finance today launched the seventh annual study of ‘Innovation in retail banking’. According to the research, 84% of retail banks have increased their investments in disruptive technologies and innovative services this year to deal with a surge in new industry competitors. This comes at a time when the perceived threat of market disruption in retail banking is mounting.
According to the report, which surveyed over 100 retail banks around the world, approximately three quarters (72%) regard the threat from technology companies, start-ups, retailers and/or telecom players as high or very high. The report highlighted that start-ups introducing new technologies and business models that are counter to established retail banking practices present both challenges and opportunities for banks.
The research also highlighted that multinational retailers, such as Tesco and Walmart, have launched banking products (independently and in partnership with GoBank, respectively) to compete with established financial services providers. It also explored the success of TransferWise (payments) for its P2P model that undercuts banks and legacy competitors.
Michael Reh, Executive Vice President and CEO (Designate), EdgeVerve:
‘Digitalization continues to massively shake the business foundations of ‘brick and mortar’ banking institutions. Banks need to proactively disrupt themselves and explore working with innovative start-ups to accelerate change and develop a leading edge in a competitive market. To achieve this, a dual strategy will be critical. Banks need new capabilities to help their businesses grow in new ways. They also need to renew their existing systems, opening them up to benefits of mobility, analytics, cloud computing, and connected systems.’
Patrick Desmarès, Secretary General, Efma:
‘This year’s global retail banking study demonstrates that banks are eager to innovate, develop formal innovation practices, and increase their involvement with start-ups. This is a step in the right direction, but retail banks must be confident about the value of their start-up investments in order to collaborate with start-ups.’
As a global not-for-profit organiZation, Efma brings together more than 3,300 retail financial services companies from over 130 countries. With a membership base consisting of almost a third of all large retail banks worldwide, Efma has proven to be a valuable resource for the global industry, offering members exclusive access to a multitude of resources, databases, studies, articles, news feeds and publications. Efma also provides numerous networking opportunities through working groups, webinars, and international meetings. True to its vocation, Efma has recently developed an Innovation portal which aims to identify and award the most innovative projects in the retail financial services arena. For more information: www.efma.com
Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of Infosys. The solution helps financial institutions develop deeper connections with stakeholders, power continuous innovation and accelerate growth in the digital world. Today, Finacle is the choice of banks across 84 countries and serves over 547 million customers – nearly 16.5 percent of the world’s adult banked population.
Finacle solutions address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination, liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide. Assessment of the top 1000 world banks reveals that banks powered by Finacle enjoy 50 percent higher returns on assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others.
To know more, visit www.finacle.com
EdgeVerve Systems, a product of Infosys (NYSE: INFY), develops innovative software products and offers them on-premise or as cloud-hosted business platforms. Our products help businesses develop deeper connections with stakeholders, power continuous innovation and accelerate growth in the digital world. We power our clients’ growth in rapidly evolving areas like banking, digital marketing, interactive commerce, distributive trade, credit servicing, customer service and enterprise buying.
Today, EdgeVerve products are used by global corporations across financial services, insurance, retail and CPG, life sciences, manufacturing, and telecom. Infosys Finacle, our universal banking solution, is the choice of financial institutions across 84 countries and serves over 547 million customers – nearly 16.5 percent of the world’s adult banked population.
To know more, visit www.edgeverve.com
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