What Top Performing Banks Do Differently
The technology secret
According to Bain & Company, its analysis of 42 of the largest banks in the world (by assets) indicates that a bank’s performance is strongly correlated with how well existing technology is utilised, rather than the level of technology spend. In addition, the analysis found that banks with a strong strategic focus on technology deliver an average of 5 percentage points higher total shareholder return, 10 percentage points lower cost-to-income ratio, and 12 points higher Net Promoter Score than their peers.
The analysis found that the strongest correlations with high performance were:
A tech-savvy board of directors. Having a technology strategy that the board and C-suite personnel have bought into;
A higher number of in-house engineers and fewer other IT staff. Leading banks have built a world-class engineering function for the parts of the business and technology stack that require differentiation, and;
Positioning as a technology company. A technology-centred mindset underpinning the operating model.