Change in banking was historically slow and incremental. But lately, the onslaught of technological advances has bankers more on their toes than ever before.
Just one year ago, our annual technology survey revealed that 50% of banks had no plans to offer services over the Internet.
In contrast, the 1996 American Banker survey, conducted in conjunction with Payment Systems Inc., showed 70% expect to offer Internet access within two years. (See story on Page 10A.)
Few technology-related issues have as swiftly captured the attention of bankers.
The survey also found that most banks are stepping up spending on so-called data warehouses, which draw customer information from many sources and systems to aid marketing efforts.
Total systems spending will jump a whopping 20% at most big banks this year.
One area getting investment dollars is telecommunications. The need to forge stronger links with customers and among far-flung operations led to record spending levels this year. (See Page 14A.)
While growth in overall technology expenditures continues to outpace inflation, spending patterns at individual banks diverge widely. (See Page 4A.)
On the corporate side, many banks are boosting cash management offerings. (See Page 8A.)
We hope you find the survey results informative and useful. As always, we welcome your thoughts.
