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November 8, 2016updated 09 Nov 2016 3:01pm

Banks reluctant to spend on digitalising their lending despite consumer change in banking habits

By Ana Gyorkos

In an age where we can bank on our mobile phones, shop from our couches, or even fund our small business online, expectations from consumers have come to include a digital presence from banks and businesses across the world.

But a report from GlobalData says limited investment in digitization is a long-term threat for traditional banks.

A staggering 55% spent less than 15% of their budget on digitising their lending processes, said the report, while only 28% of financial businesses spend between 5-10% of budget on digitisation in lending, 4% spent more than 30% of their budget on keeping up with the curve of the market.

The report, which outlines the threat that internal investment decisions can take on digitisation in lending, says that 2% of the financial institutions it surveyed spent between 26-30% of their budget on digitising their credit and lending processes.

So the next time that a small business owner looks to fund some equipment, or a consumer looks to take out a loan for that car or holiday, they could be looking at alternative fundersĀ  for their credit needs.

 

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