Banking and investment CIOs are becoming increasingly convinced that their old business models and existing value propositions will not be sustainable in the future.
The reaction is to aggressively implement suitable digital technologies before they disrupt their industry entirely, according to Gartner’s 2018 CIO Agenda Survey.
“Banks clearly recognize that the status quo is not sustainable, and they must disrupt themselves before it is done to them,” said Pete Redshaw, Managing Vice President at Gartner.
Despite this knowledge, and contrary to popular belief, banks have little to no interest in blockchain technology, with only a few CIOs adopting this technology, the survey finds.
Most CIOs seem fond of business intelligence and analytics software, with many of them viewing artificial intelligence as a differentiator.
The ability to turn raw data into actionable information by spotting unexpected patterns or developing superior algorithms will certainly differentiate banks that do this better than their rivals.
“This is an industry that recognizes that a firm must become truly digital – in culture, value, and technology – if it is to stand a chance of surviving and thriving,” said Redshaw.
Banks are in fact ready and willing to make more use of public cloud, but are held back by their risk-averse culture and their regulators.
“These priorities point to a continuing tension between two opposing forces,” Redshaw added. “On the one hand, there is a need to rapidly transform the business, on the other hand, there is the innate inertia that arises from a huge IT estate that supports a heavily regulated industry.”