For the tenth consecutive year, Temenos has conducted a comprehensive banking survey, covering areas such as the industry’s corporate and IT priorities, business challenges, competitive trends and progress to becoming more digital. The results from this year’s survey have found that banks are increasingly viewing fintech companies not as competitors but as partners. In fact, the majority of banking organizations now see open banking as an opportunity as opposed to a threat. This comes at the same time that banks are finding challenger banks to be more of a threat than in the past and where large tech firms are also seen as a greater competitor.
The survey found that financial institutions continue to increase their spending on IT, digital delivery and core systems upgrades. To this end, 32% of respondents said legacy systems represent the biggest barrier to digitization, far ahead of issues such as a lack of strategic focus (14%) or a lack of skills (12%). Maintaining profitability and meeting consumer needs were identified as the greatest challenges by banks. Competition and data were also identified as challenges, although to a lesser degree than maintaining profitability and meeting consumer needs.