This report presents the findings from a survey of 131 retail banks regarding their approach to Information & Communications Technology (ICT) procurement. The survey investigates the way that retail banks like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.
Provides insights into retail banks preferred buying approaches.
Comprehend the business objectives that retail banks are looking to achieve through their IT investment strategy.
Appreciate the IT objectives that retail banks are looking to achieve through their IT investment strategy.
Understand the factors that are influencing retail banks decision to select an ICT provider.
Understand which organisational roles influence ICT purchasing decisions and signing off budgets.
Why was the report written?
To highlight the criteria on which retail banks select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.
What is the current market landscape and what is changing?
Retail banks have an optimistic approach towards IT investments, and their preference towards hosted services is slowly gaining traction.
What are the key drivers behind recent market changes?
Banks are gradually shifting to the hosted model as they identify the importance of cloud solutions to boost their agility & scalability, and improve customer responsiveness.
What makes this report unique and essential to read?
Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Procurement. Very few IT analyst houses will have interviewed 130+ ICT decision makers in the retail banking industry in H2 2012.
Retail banks have a higher preference for buying technologies from local resellers compared to national resellers, as they tend to be in a better position to provide timely support services and also possess vertical expertise.
Many banks are reluctant to entrust their sensitive customer and financial information to cloud service providers (public or private). Furthermore, data privacy and security regulations in many countries prohibit the storage and processing of customer data outside national borders.
Retail banks are continuously looking to streamline their operations and achieve greater efficiency to support business growth. This is evident from the survey, where banks are placing utmost importance on the business objective of raising efficiency, assigning it the highest average rating of X on a scale of 1 to 4.
Increasing competition and deteriorating revenue growth are forcing retail banks to embrace leading edge technologies such as cloud computing, mobile services, and social media in order to reduce their operating costs and improve time to market for their new products.
According to Kables survey, 49% of retail banks state that they have an ICT infrastructure which is somewhat complex, with several hardware manufacturers, operating systems, databases, applications, and other elements, whilst 30% describe their ICT infrastructure as very complex with multiple instances of different technology types.