Results Indicate U.S. Financial Institutions Are Accelerating The Drive To Digital Channels
BRENTWOOD, TENN., September 1, 2020 – Bank Director, the leading information resource for directors and officers of financial institutions nationwide, today released its 2020 Technology Survey, sponsored by CDW. Findings indicate an acceleration of digital channels, with almost all respondents stating their bank has seen increased adoption and use of digital channels due to Covid-19.
“Branch networks remain vital for many banks as they seek to effectively serve their customers,” says Emily McCormick, vice president of research at Bank Director. “However, the coronavirus pandemic has stimulated the rapid adoption and use of digital channels, forcing financial institutions to adapt accordingly. Bank Director’s 2020 Technology Survey explores how these changes will propel the industry forward.”
The survey was distributed in June and July, following a period of time when many banks upgraded their technology to better serve customers digitally, facilitate remote work by their employees and respond to the high demand for Paycheck Protection Program (PPP) loans. Sixty-five percent say their bank implemented or upgraded technology due to the coronavirus crisis. Of these respondents, 70% say their bank adopted technology to issue PPP loans. Yet, just 37% sought new technology providers as a result of the pandemic.
“The banking industry has been discussing digital transformation for years and while the industry has made great progress, a lot of work remains,” says Scott Hiemstra, a sales director who leads the financial services team at CDW. “The Covid-19 pandemic has accelerated this technology transformation even more. As we look to 2021, the industry will face an unprecedented pace of change in order to remain competitive and secure. Banks will continue to modernize their infrastructures and integrate with the cloud, accelerate innovation in the areas of artificial intelligence and machine learning, and extract value from data to enable a better customer experience.
Additional key findings include:
Focus on Experience
Eighty-one percent of respondents say improving the customer experience drives their bank’s technology strategy; 79% seek efficiencies.
Room for Improvement
Just 13% say their small business lending process is fully digital, and 55% say commercial customers can’t apply for a loan digitally. Retail lending shows more progress, with three-quarters saying that process is at least partially digital.
Spending Continues to Rise
Banks budgeted a median of $900,000 for technology spending in fiscal year 2020, up from $750,000 reported last year. But financial institutions spent above and beyond that to respond to Covid-19, with 64% reporting increased spending due to the pandemic.
Remote Work Permanent for Some
Forty-two percent say their institution plans to permanently shift more of its employees to remote work arrangements following the Covid-19 crisis; another 23% haven’t made that decision.
The survey includes the views of more than 150 independent directors, CEOs, chief operating officers and senior technology executives of U.S. banks below $50 billion in assets, who shared how technology drives strategy at their institutions and how those plans have changed due to the Covid-19 pandemic. Full survey results are now available online at BankDirector.com and will be featured in the 4th quarter 2020 issue of Bank Director magazine in October.
About Bank Director
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through Bank Director magazine, executive-level research, annual conferences and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director is headquartered in Brentwood, Tennessee. For more information, please visit BankDirector.com.
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