Ninety-four percent of bankers reported needing the latest technologies to satisfy customers. But when asked to name their top three technology investments, banks had diverse responses. The principal investments reflect a continuation from past years, emphasizing digital tools and efficiency.
Digital account opening, efficiency drivers and financial wellness led over other technologies tested, but only slightly. Institutions with assets between $1.1B and $5B were significantly more likely to select the top two options.
Data analytics, branch technologies and wealth management clustered together with moderate attention.
The last three options rounded out the group, and a statistically insignificant percentage selected “other.”
Digital account opening, for both consumers and businesses, has been a primary focus for years. Particularly relevant in today’s interest environment, banks continue to invest here to streamline access to new deposits and acquire new business faster.
Although beaten out by other technologies, in-branch technologies remain noteworthy as banks see continued foot traffic following the massive decline throughout the COVID-19 pandemic. Considering bankers’ confidence that the branch will remain relevant for the next 10 years, it’s clear that they are taking steps to improve that branch experience for customers and employees.
This year, financial wellness also rose in the ranks, likely stemming from economic concerns and a drive to solidify the community financial institution at the center of consumers’ financial lives. Meanwhile, it’s possible that banks have already invested in digital lending and small business banking or that the interest environment has shifted these to lower priorities for some institutions.
Although high interest rates may lead to fewer businesses applying for loans, our experts maintain that small business and commercial banking still have a high potential for driving fee revenue. In addition to deposit accounts that banks can use to invest in new interest-generating opportunities, banks can make revenue by offering payment processing services, cash management solutions, specific products like business credit cards and even advisory services to businesses on topics like financial planning and investment strategies.
