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Banks Spending More on Innovation: Report

A new survey from Infosys and EFMA finds that 77% of the banks polled are increasing investment in innovation, compared to 13% in 2009.

Retail banks around the world are increasingly investing in innovation as a means of generating revenue and controlling costs, according to a new survey from software services provider Infosys and the European Financial Marketing Association (EFMA).

The 2013 "Innovation in Retail Banking" report, which surveyed 148 banks in 66 countries, found that 60% of banks surveyed have an innovation strategy compared to just 37% five years ago, when the report was first issued.

The study also found that to overcome the main barriers to innovation – legacy systems and organizational silos – banks are looking towards technologies that can simplify their operations and deliver a richer customer experience. In particular, mobile innovation is beginning to gather pace, with 77% of banks deploying or planning to deploy a mobile wallet solution, the study found.

Further, 77% of the banks surveyed are increasing investment in innovation, compared to 13% of banks that reported increased investment in the 2009 survey.

Among the specific areas of innovation highly cited, 69% of banks polled said they are deploying or planning to deploy mobile location-based offerings. Meanwhile, 45% of banks are already using or planning to invest in gamification, and 61% of currently allow or plan to allow customers to do some form of product personalization.

[Related Content: The Complicated Relationship Between Innovation and Security]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

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Byurcan
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Byurcan,
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10/23/2013 | 12:49:58 PM
re: Banks Spending More on Innovation: Report
Probably a bit of both; innovation is something of a buzzword, so whle some firms probably have dedicated teams, others might just be dabbling in this "trend" because they feel they have to.
Nathan Golia
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Nathan Golia,
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10/22/2013 | 8:21:44 PM
re: Banks Spending More on Innovation: Report
Interesting they should be so vague. I wonder how these banks are defining innovation internally GÇö whether it's about full teams devoted to it or just about adopting new things as they pop up. We're seeing both approaches in financial services; will be fun to watch what works.
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