'Retail banks look to invest in innovation to boost revenues'

According to a study by Infosys, about 77% of banks surveyed are increasing investment in innovation

Retail banks across the world are increasingly investing in innovation as a means of generating revenue and controlling costs amid recovery in global economy, says a study by IT major Infosys.

Banks are looking towards technologies that can simplify their operations and deliver a richer customer experience. In particular, mobile innovation is beginning to gather pace, with 77% of banks deploying or planning to deploy a mobile wallet solution, the study said.

About 77% of banks surveyed are increasing investment in innovation. "This is an encouraging trend as the 2009 study revealed only 13% of banks had increased investment," the study, which surveyed 148 banks in 66 countries, said.

"As the global economy recovers, retail banks across the world are increasingly investing in innovation as a means of generating revenue and controlling costs," it said.

Also, 60% of banks surveyed have an innovation strategy compared to just 37% five years ago, when the study was first issued, it said.

More than half (58%) of banks surveyed believe the ability to deploy new systems in components would have a positive impact on their ability to innovate.

Mobile location-based offerings were cited as another area of innovation for banks, with 69% deploying or planning on making deployments, it said.

To enhance their product and service offerings, 45% of banks are already using or planning to invest in gamification, and 61% of banks currently allow or plan to allow customers to do some form of product personalisation, the study, commissioned by Infosys and conducted by Efma, said.

"The report also reiterates that retail banks across the world have recognized that simplification and innovation can go hand-in-hand to help grow business and deliver excellent customer service," Haragopal M, Global Head of Finacle at Infosys, said.