Banks see Amazon, Apple and Google as growing threat, report claims

11.10.2014

At the same time banks are becoming less concerned about traditional rivals, such as large incumbents lenders cited by 20 percent, start-up banks (17 percent), and supermarkets providing financial services (7 percent). All of these figures are lower than the previous year.

However, large banks hamstrung by legacy IT systems will still need to be wary of more agile competitors from within the finance sector, Robinson warned.

"The only point to note is that large banks must act if they are to withstand the competitive threat from new entrants, such as removing legacy applications and investing in analytical capabilities," he said.

"The window for action is shortening, as both the rate of innovation and change accelerates, and these new entrants eat away at existing banks' margin and, by extension, their available funding to make the necessary changes."

The survey also found that, despite ongoing problems with legacy systems at many banks, 53 percent of respondents said their businesses are unlikely to take action to overhaul IT without regulators forcing their hand.

(www.computerworlduk.com)

Matthew Finnegan

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