Retail financial institutions have grossly underestimated the technological changes necessary to thrive in a digitally dominated world. According to Celent, an international financial research and consulting firm, a significant majority of banks and credit unions are ill prepared for the tech upheaval being thrust upon them.
It’s not all doom and gloom on retail banking’s technology front. Celent says North America’s banking industry seems to be waking up to the new technological challenges it faces today. In a report on tech trends affecting financial institutions, Bob Meara, Senior Analyst with Celent’s Banking Group, says more and more banks and credit unions are heading down the right road.
“It may be a journey and not a destination,” Meara says. “A growing number of financial institutions at least have their bags packed and are ready for the trip.”
Delivery Channel Funding Priorities
The comparison between banks and credit unions is stark, with just 24% of credit unions ranking the branch channel #1 compared to 40% of banks. Conversely, credit unions rank the online channel comparatively more important — 46% versus 29% among banks. Similarly, large differences are seen in the mobile and call center channels.