Bank Director's 2024 Technology Survey highlights the state of
technology adoption and concerns among U.S. bank leaders.
NASHVILLE, Tenn., Sept. 10,
2024 /PRNewswire/ -- Bank Director, the
leading information resource for directors and officers of
financial institutions nationwide, released the results of its
2024 Technology Survey, sponsored by financial technology
provider Jack Henry. The findings
reveal how today's bank leaders think about strategy, resources,
emerging technologies and fraud.
Banks increasingly rely on data analytics to improve back-office
productivity and manage regulatory compliance duties. According to
the survey, improving operational efficiency (49%),
attracting and retaining customers (29%), and growing low cost
deposits (10%) are identified as banks' primary technology
objectives.
"Given today's revenue challenges and elevated labor costs, it's
little surprise to see efficiency as a key driver behind bank
investments in technology," says Emily
McCormick, Bank Director's vice president of editorial and
research. "However, just 21% of senior technology executives, CEOs
and board members say they measure return on investment for their
technology projects — indicating it could be difficult to know
whether they've attained those strategic goals."
Three-quarters of respondents report increased technology
budgets for fiscal year 2024. Over the past 18 months, bank leaders
say their organization has invested in payments (53%), digital
retail account opening (46%), digital business account opening
(37%) and data analysis (32%).
While most banks are actively discussing budgets for data
analytics (80%) and artificial intelligence (66%), few realize they
have only a fraction of their customers' financial data on
hand.
"Due to financial fragmentation, banks must embrace open banking
to access a comprehensive view of an account holder's data
necessary to feed algorithms and tune foundational AI models," says
Greg Adelson, President and CEO of
Jack Henry. "Without broad customer
data, banks can't identify small business owners from retail
accounts, enhance personal service at scale, and deliver
personalized product and service recommendations."
The survey includes the views of 111 independent directors,
chief executives, chief operating officers and senior technology
executives of U.S. banks below $100
billion in assets. Full survey results are
now available online at BankDirector.com.
Additional Key Findings
A Shifting View of Competition
Compared to prior
surveys, respondents still identify local banks and credit unions
(52%) and big or superregional banks (49%) as their primary
competitive threats, along with neobanks that compete for consumer
deposits (43%). However, bank leaders report increased concern
about the competitive threat posed by retailers such as Amazon and
Walmart, with 12% citing them as a competitive threat compared to
5% a year earlier.
Delayed Projects
Sixty percent say one or more
technology projects weren't completed on schedule over the prior 18
months, and 36% say they experienced issues integrating the new
technology into existing systems. Just 21% say they had no issues
with planned technology projects.
Hiring: Developers
Just a quarter of respondents say
their bank employs developers or programmers, double the percentage
who said as much a year ago. Banks over $1
billion in assets are more likely to make these hires.
Board Priorities
Sixty-one percent say that leveraging
technology is a strategic priority for the board. Half of
respondents say their board has a technology expert. Of those
without a technology expert, 29% say their board is seeking to add
one.
About Bank Director
Bank Director reaches the leaders
of the institutions that comprise America's banking industry. Since
1991, Bank Director has provided board-level research,
peer-insights and in-depth executive and board services. Built for
banks, Bank Director extends into and beyond the boardroom by
providing timely and relevant information through Bank Director
magazine, board training services and the financial industry's
premier event, Acquire or Be Acquired. For more information, please
visit BankDirector.com.
About Jack Henry &
Associates, Inc.®
Jack Henry™ (Nasdaq: JKHY) is a
well-rounded financial technology company that strengthens
connections between financial institutions and the people and
businesses they serve. We are an S&P 500 company that
prioritizes openness, collaboration, and user centricity – offering
banks and credit unions a vibrant ecosystem of internally developed
modern capabilities as well as the ability to integrate with
leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to
enable clients to innovate faster, strategically differentiate, and
successfully compete while serving the evolving needs of their
account holders. We empower approximately 7,500 clients with
people-inspired innovation, personal service, and insight-driven
solutions that help reduce the barriers to financial health.
Additional information is available at
www.jackhenry.com.
For more information, please contact Bank Director's Director of
Marketing, Deahna Welcher, at
dwelcher@bankdirector.com.
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SOURCE Bank Director