Banks are not technology companies (yet)

Banks are not technology companies (yet)

Chris Skinner

Chairman at The Financial Services Club

Views 576

Banks are not technology companies (yet)

22.03.2016 11:30 am

I’ve been illustrating my frustration with incumbent banks for some time, saying that they lack technology leadership.  Almost a third of my new book talks about the biggest challenge for banks to respond to Fintech, Big Data, Cloud, Blockchain and all those other issues is to have leadership.  Digital transformation is not a project run by a function, but a complete change of the bank.  You cannot change the bank without strong leadership and most are failing.  In fact, the only bank that’s really out there is BBVA, because their leader is a programmer by background.  Even they have problems though with cross-functional structures and a channel-based view of the market.

Why is this a problem?

It is a problem because how can you change the bank to be digital if (a) the leadership doesn’t understand technology and what digital means; and (b) if no one on the Executive team has any experience of technology.

Banks are run by financiers, not technologists. I highlighted this point a while ago, and was delighted to recently pick up this report from Accenture, published at the start of the year.

Accenture analysed the background of 1,925 executive and non-executive directors of 109 of the largest banks by assets in the world, to find out if they had any background in technology.  This meant finding board members who had previously had senior technology responsibilities, such as serving as a Chief Information Officer, Chief Technology Officer or Chief Digital Officer.

Guess what they found?

Only 3% of CEOs of leading banks have professional technology experience;

Only 6% of board directors have professional technology experience;

40% of banks have no board members with any professional technology experience in their career.

Banking is a technology business.  What are you thinking?

Dumb and dumber

Source

Latest blogs

n/a n/a

How COVID-19 Is Ushering In a New Era of Cashless Technology

  Image source: https://www.pexels.com/photo/person-shopping-online-3944405/   Cashless technology isn't a completely fresh concept. People have been using credit cards for decades, and the market for fintech services has been Read more »

Jean Shin tyntec

Using WhatsApp for 2FA is the Future of Banking

From user authentication and password resets to transaction verification, two-factor authentication (2FA) offers basic but useful protection for consumers. The 2FA process typically sends an SMS sent to the customer with a one-time password (OTP). Read more »

Amir Ghodrati App Annie

The Role of Fintech Apps in Navigating This Period of Financial Insecurity

Economic instability has been ricocheting throughout the stock market in the wake of the global coronavirus pandemic. Its effects have been felt across all industries, with winners and losers’ across different sectors. So, how has fintech Read more »

n/a n/a

How to Choose a VPN for Digital Privacy & Security

In a world where almost everything is connected, and where hackers and other malicious people are roaming the internet, it is always advisable that you take every precaution that you can to enhance your data security and privacy protections. Using a Read more »

Ben Slater Instaclustr

The Case for Adopting Open Source – Own Rather Than Rent the Foundations of Your Business

For some time open source was seen as something that only the biggest companies could use and play with. But with the modern, increasingly fast business environment, the use cases for open source are in everything and the technology is increasingly Read more »

Related Blogs

Simon Wilson Icon Solutions

Strange New World: What Next for Banks?

What’s next for banks in this strange new world we find ourselves in? Forget the forecasts and predictions, we are in unchartered territory and the only honest answer is that no one truly knows exactly what is coming down the line. But what we do Read more »

Amit Dua SunTec Group

Intelligent systems can help banks maintain business continuity and reinforce customer trust in these uncertain times

With the inevitable tribulation and market regulations resulting from the pandemic, one thing is certain - the global banking landscape will face a lot more uncertainty. In the meantime, banks have been called on to help boost the economy – to Read more »

Andrew Stevens Quadient

Banks to Defer Mortgage Payments Following Coronavirus

It’s great to see RBS leading the charge in putting customers first during a crisis – with Lloyds and TSB quickly following suit. People are talking about these policies because banks have communicated them very clearly; if you put the leg work in Read more »

Dr Bimal Roy Bhanu Ai XPRT

Are you keeping up with the Regulator?

Not many things in life are certain, but in the financial services industry it’s obvious to all participants that regulators are continually tightening the national and international governance, risk and compliance requirements. The ultimate aim for Read more »

Andrew Stevens Quadient

Banks to Use Mobile Channels and Customer Data to Differentiate Themselves in 2020

Digitally native neo-banks will continue to differentiate themselves in the market in 2020 by the experience they offer to customers. As a result, these banks will begin to pick up the critical minimum number of customers to become profitable, Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel