2 weeks Ago By Lauren Hinton
September 19 2024 NextGen data-driven core banking engine, SaaScada , today launched a new report: Boosting Net Interest Margins: Why Banks Must Not Wait To Innovate, revealing UK banks’ ongoing struggles to understand customer needs and provide them with relevant banking products at pace. The report analyses data from a survey of 150 heads of innovation at UK retail and business banks revealing that banks are facing increased pressure to innovate, grow their profitability and increase their share of wallet with existing customers. Key findings include: Nelson Wootton, CEO and Co-Founder, SaaScada commented: “Right now, UK banks are under immense pressure to balance the opposing levers of growth and profitability.
To increase their net interest margins, banks should tap into the treasure trove of customer data they have access to. This data reveals spending habits and challenges, but is currently slipping through banks’ fingers. By getting a handle on their data, banks can better understand customer needs, and launch lucrative and innovative products to address them.
If not, they will find themselves left out in the cold.” The innovation pace race The report warns that banks who can’t launch new products at speed to grow profitability will likely see their net interest margins shrink. 75% of respondents agree that to survive, banks need to launch products in months not years.
Yet it takes an average of 8.4 months to launch a new product, with nearly half (45%) of banking innovation heads saying by the time they launch new banking products, they are already outdated. Compounding the issue is the fact the industry continues to be plagued by setbacks.
51% have experienced delays launching a new product in the last 12 months, with an average delay of 3+ months. Delays caused affected respondents to lose out on a total of £51.1 million [1] in missed revenue in the last year.
Other challenges cited by respondents that had experienced project delays include: Wootton continued; “Banks must focus on improving their agility to avoid lengthy, costly product delays. To meet this goal, banks need to assess their core banking systems, and gauge whether these are agile enough to develop new products and services at pace. Truly cloud-native core banking platforms are the only way banks can bake insights and flexibility into their product offerings.
Without this capability, banks will fall behind the competition and fail to keep up with soaring customer expectations.” You can read the full report, Boosting Net Interest Margins: Why Banks Must Not Wait To Innovate here: https://bit.ly/saascadaresearch2 Nelson Wootton SaaScada SaaScada News Fintech News Fintech Insurtech.
