A new report by Fenergo has stated antiquated technological infrastructure is preventing many banks from investing in new disruptive technologies.
The report stated that 20% of the surveyed C-suite executives of banks said that old technologies hinders adoption of big data analytics and artificial intelligence (AI) to improve client lifecycle management (CLM).
More than two-thirds (67%) of the banks have not yet partnered with a fintech/regtech provider to streamline operations.
Around 40% were found to have integrated with an external data or know your customer (KYC) utility provider.
The Fenergo report also says that 33% of those surveyed have not invested in any technology to facilitate client on-boarding. However, 99% of them agreed that this underinvestment affects client on-boarding and their subsequent retention.
Only 15% of the respondents said they have automated data collection process.
Fenergo CEO Marc Murphy said: “Our report findings tell us that the lack of technology investment and maturing infrastructures are creating barriers to digital transformation.
“By connecting internal and external systems and technologies through specially designed APIs financial institutions can build powerful customer ecosystems without the need for a complete rip and replace.
“Underpinned with a centralised client data strategy, financial institutions can achieve a single client view across all jurisdictions, business units and products.”
The Fenergo report is based on a survey of 250 C-suite executives of banks of varying sizes across the world.
The findings are the final instalment of a three-part CLM trends report.