Wednesday, June 27th, 2012
Melbourne, June 27, 2012 – IT budgets are under pressure across the Australasian retail banking industry. While CEOs are mainly focused on agility, customer centricity, mobility, and digital innovation, Ovum finds that cost and efficiency continue to be the key considerations for investment decisions across the industry.

In a new report*, Ovum examines the major issues in retail banking from different functional levels and perspectives. The independent technology analyst firm found that cost and efficiency rank highest on CIO and CEO agendas.

Denise Montgomery, Ovum’s Research Director Financial Services and author of the report, says: “Agility and improving customer experience were highly ranked by CEOs and CIOs. However, cost and efficiency remain the underlying focus.”

Efficiency and cost management continue to be the key decision-making criteria for any large investment in capability or innovation. As a result, banks are returning to functional centralization and rationalization of duplicate processes and activities. With investment priorities increasingly favoring online processes and products, large back-end, enterprise-level initiatives are being deferred due to cost management concerns.

Montgomery adds: “Outsourcing and offshoring are still on CIO agendas, and are seen as key strategies in reducing costs and improving efficiency.”

“Most banks are also building regional hubs, and enterprise-wide programs are being cut in response to cost pressures,” concludes Montgomery.



* Understanding Executive Challenges in Retail Banking in Asia-Pacific

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Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organizations must support. Ovum is an Informa business.
Jennifer Duraisingam
P: +61 (0)3 9601 6723


IT budgets are under pressure across the Australasian retail banking industry.



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