A new report from Aite Group, LLC looks at how North American banks make technology decisions for the branch channel, and examines the likelihood of banks to replace various types of branch technology in the next 24 months. Based on a survey of executives at 14 of the top 100 North American banks by number of checking accounts, completed from April to July of 2008, the report provides insight into the strategies banks will employ in order to improve branch processes and increase revenues over the next two years.
The current economic climate has led to declining deposits, troubled loans, and consumers worried about their own finances. Bank executives now more than ever need to find ways to meet their business goals, which include increasing revenues despite economic conditions. Banks recognize that there are areas in which they can improve, whether it’s in the ability to cross-sell, the ability to effectively price deposits, or in the ability to offer differentiated products. Achieving greater efficiency, processing more transactions, processing transactions faster, freeing up staff to assist more customers, and improving branch processes are some of the ways that technology can assist branch executives in meeting these goals.
“Today’s branch channel is not light on technology, but purchases and replacements of technologies remain critical,” says Kate Monahan, analyst with Aite Group and author of this report. “Although branch technology replacement is well underway at North American banks, ample opportunities remain for banks and vendors, alike.”
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