IT will enable UK banks to prosper despite the global
credit crunch and toughening regulatory climate, according to a new
report on world retail banking.
The report, by consultancy Capgemini, financial services company
ING and European industry association EFMA, said new technologies
had transformed banking information systems into enablers of new
services and processes.
"For example, new technologies make it possible to separate
distribution and production systems, which has enabled new business
models like the
'white label' bank, such as Virgin Money or Sainsbury's Bank,
giving banks the benefit of delivering a product without the cost
of the channel and distribution," said Paul Pullinger, head of
sales banking at Capgemini.
The report said banks were being supported by their leading
position in technology-enabled remote channels, such as
internet banking.
"There is a correlation between business growth and properly
integrated multi-channel customer service, as shown by Dutch bank
ING, which exceeded the average market growth between 2004 and 2006
by 40%," said Pullinger.
He said the bank's strategy was aimed at enabling the same level
and quality of service across all channels to encourage uptake of
the lower-cost technology-enabled ones.
Another important shift in how banks were using technology was
being enabled by common systems in which customer information is
shared across multiple product systems in banking organisations to
enable cross-selling through better understanding of customer
needs, said Pullinger.
"Newer technologies are also enabling banks to improve customer
service through things like automated anti-money laundering and
anti-fraud checking that have been enabled by real-time assessments
of what is happening in the bank."
Other technology support for banking mentioned by the report
included the ease with which new software packages built in an open
architecture can be rolled out, and the ability it gives new
entrants to set up systems quickly, potentially leap-frogging
established players.