DELEGATES from Guernsey’s banking sector met at a recent breakfast meeting to hear on the future of the banking industry from Chris McGinnis, head of strategic planning at banking software provider Temenos.
The event, organised by the C5 Alliance Group, was the second in a series of banking user group meetings aimed at bringing together local IT professionals and decision makers from the banking sector to discuss important issues relating to technology and getting the most out of banking software.
Mr McGinnis’ presentation focused on the results of an annual Temenos survey that assesses the challenges, investment priorities and trends in the financial services sector across the globe.
“This was our sixth annual survey and the purpose is to take a pulse of the banking sector globally to discover the trends. Some are expected but some are a little more surprising,” said Mr McGinnis.
The survey highlighted that the perceived challenges of the industry are changing in tandem with customer expectations. As a result of this, banks are prioritising product innovation, IT modernisation and expanding the available channels including online banking, mobile applications and in some cases social media.
“The main concern is the changing nature of the challenges that banks are facing. For the first time we’re seeing a realisation from bankers that they need to react to competition in the industry; from existing banking players and more importantly from new competitors outside of the industry such as the supermarket entrants,” he said.
“Customers are more demanding than ever and loyalty is decreasing, so banks realise they need to adapt to meet both competition and changing customer perspectives.”
Marc Lainé, managing director of the C5 Alliance Group and co-ordinator of the banking user groups said:
“We’re very pleased that Chris could join us, he provided some very good food for thought for everyone at the event.
“It’s becoming clearer that banks need to review and modernise their IT infrastructures. New entrants in the market have the advantage of being able to launch immediately with up-to-date software and without the burden of transferring legacy data.
“The real challenge for banks is to make the right decisions with technology now, choosing infrastructure that is flexible and upgradeable. By doing this, a company can future-proof itself for any changes in the market or regulatory climate and save time and money in the long run,” he said.