Investment ROI: only half the money spent leads to services in the customers’ handsĨ0% of respondents confirmed they are investing more than £25 million into ‘innovation’ every year, with over a quarter (27%) spending more than £100 million. On the flip side, a third agreed that existing technology was the single biggest thing holding them back from executing on innovation, along with internal systems and processes (27%) and a risk-averse culture (20%). Surprisingly, and despite continuing rhetoric around the ‘problem with legacy systems’, only one-fifth of respondents named outdated and / or failing technology as a key business challenge keeping them awake at night, with just over two-thirds (67%) seeing their bank as a technical leader. Technical prowess: banks see themselves as technical leaders but are held back by existing systems Others are further ahead and have seen industries decimated by digital and believe that reality isn’t too far away.” “Some are preoccupied with their peers and believe that banking is a protected industry where the barriers to entry such as regulation and security are too high. “The confusion and contradiction is typical of an industry in the middle of a transition,” says Nick Cheetham, Managing Director of Monitise FINkit. However, despite the regulatory pressure and the CMA’s intentions, only 27% believe Open Banking will improve their business and make it more competitive, and only 13% believe it will allow them to offer their services to customers of other banks.Ĭompetition: banks preoccupied with peers rather than challengersĬompetitive threat is overwhelmingly seen to be coming from incumbent banks (80%) rather than challengers such as Atom and Monzo or technology businesses such as Amazon or Facebook applying for banking licenses (33%). 60% of respondents named regulatory change and the pressure of compliance as the key challenge keeping them awake at night (with competition 53%, fraud or criminal activity 53%, and Net Promoter Scores 53% also top distractions). Regulation: keeping bank executives awake at night but they are at risk of missing the opportunity presented The study, carried out by independent researchers LM Research, includes responses from 15 major UK banks and other financial institutions. Monitise FINkit® can today announce the key findings from its research into senior banking executives’ priorities, challenges, and future plans. 80% of banks threatened by each other and not new challengers.Less than a third think Open Banking will improve their business and make it more competitive.Monitise FINkit research - Banks at risk of missing the open banking opportunity

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