NEW YORK (Reuters) – The $1 trillion invested by traditional banks globally over the past three years to improve their technology has not yet delivered the revenue growth that had been expected, according to an Accenture report released on Thursday.
The consultancy analyzed more than 160 of the largest retail and commercial banks in 21 countries to determine whether those making the most progress on technology were achieving better financial performance.
It found that banks that had advanced the most on digital were the most profitable and highly valuable, but that the higher profitability was driven by having reduced costs rather than revenue growth.
Banks had hoped that by creating better digital products and experiences for customers they would have achieved the same fast user and revenue growth as new tech-savvy competitors or large technology firms, Alan McIntyre, a senior managing director at Accenture and head of its global banking practice, said in an interview.
“Having a good digital offering is not enough to move customers,” McIntyre said. “If it doesn’t change, the industry is going to end up looking more like a utility.”