The themes arising from Finextra's article are not unique to the finance and banking worlds. However it suggests that there is a disconnect between the IT community working within Europe's top banks and the representation of technology issues at board level.
Surveying 200 European IT heads at financial services organisations the survey by Luxoft found that 86% of those asked claimed that recently proposed major digital projects had been rejected at Board Level. Reasons for this ranged from a misunderstanding of the outputs that could arise from those digital projects to unrealistic expectations as to the outcome of the project versus cost.
The outcome of the report is somewhat surprising given that a similar report by Accenture back in 2015 produced similar results and highlighted the lack of experienced technologists on the boards of some of Europe's major banks. Equally surprising is that technology is likely to be a clear differentiator for banks and financial institutions in the future with the rise of the challenger banks, other lending platforms and current and future generations demanding better user experiences from their financial providers. Perhaps more relevant is the advances being made by the major technology businesses who are starting to enable financial transactions between their user bases (i.e. facebook and Apple). These organisations have significant user loyalty and are focused on user experience. Yes - banks are needed to enable these transactions but who drives the customer relationship experience and maintains customer/user loyalty may become an interesting battleground over the next few years.
Boardroom ignorance holding back bank's tech plans