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Banks, credit unions say economy worries lead to more technology, efficiency
December 15, 2008
NEW YORK — ACI Worldwide Inc. says banks and credit unions plan to lean on technology to improve profitability.
According to an ACI survey of financial institutions, which was conducted in November during the BAI Retail Delivery Conference & Expo, 85 percent say they are investing in technology solutions that can deliver a positive impact on profitability in the current financial crisis.
The survey also found that other big challenges for FIs include gaining efficiencies, winning new customers, and keeping up with new systems and technology. More than 36 percent said they are controlling expenditures by making operational cost reductions, followed by 10 percent that have begun to outsource certain functions, and 13 percent that have increased efforts to reduce fraud. And more than 20 percent said they have put other controls in place to stay profitable. For many FIs, mergers and acquisitions have resulted in the operation of disparate, unconsolidated systems, at a time when system convergence and enterprise payment systems are key to ensuring efficient operations. Only 22 percent of survey respondents said they are operating enterprise payment environments, but nearly 28 percent said they plan to implement an enterprise payment system within the next year.
"We expect the recent trends toward system and application consolidation will continue to be a priority for financial institutions in 2009," said Jeff Hale, senior vice president of Americas marketing and business development for ACI. "An enterprise approach makes it easier for banks to ensure ongoing compliance, as well as delivering significant improvements in efficiency. It also helps protect institutions from fraud losses from transactions that slip through cracks of disparate systems."
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