Banks must address customer demand for digital services, finds Virtusa study

20th August 2019
Banks must address customer demand for digital services, finds Virtusa study

Southborough, Mass.(US) Aug. 20, 2019: Global provider of digital strategy, digital engineering, and IT outsourcing services   with a key base in India --Virtusa Corporation  -- has released the  Top Global Banking Technology Trends,  report which highlights the key shifts in banks’ approach to their IT platforms over the last 18 months. The report   was compiled  on its behalf by Finextra.  
According to the study, the market sentiment appears to be positive with budgets freeing up from regulatory compliance initiatives to spend on other programs such as innovation, measures to improve business efficiency, and new products and services. Further findings from the study:
- Digital customer experience (79%), innovation (45%), and cost reduction (46%) are the top three areas of expenditure
- 87% of respondents said that their institution is evaluating or has already launched API-based services
- 50% of respondents are building out a new, dedicated infrastructure for their mobile channels
- 54% of respondents viewed blockchain for international payments as being of either the highest or a high priority; 44% was the similar figure for domestic payments
- 86% of respondents have already adopted cloud, with a significant amount (38%) adopting hybrid solutions

The research paper also highlights that banks are now actively partnering with relatively small suppliers, seeking to use regulatory changes to drive new income streams and use new technologies like microservices, artificial intelligence, and blockchain to provide enhanced internal controls, security, and support new customer propositions.
 “This study with Finextra identifies the current trends in the banking industry and assesses the top focus areas for banks,” said Executive Vice President and Global Head of Transformation Services at Virtusa, Bob Graham. “The banking industry is undergoing a seismic shift that demands banks reinvent themselves. The study shows several trends accelerating over the past year including open banking, cloud, microservices, fintech partnerships, and the use of artificial intelligence and machine learning that are all driving banks to expand the frontiers of digital transformation.”
The research paper has inputs from over 100 banking executives, including C-level executives, vice presidents, and directors from global banks, regional banks, and fintechs from 25 countries across North America, Europe, and Asia Pacific.

 The full report can be accessed here