Technology is increasingly crucial for banks to compete. Customers prefer seamless banking experiences and they're switching banks more readily.
Many banks still have technology systems that date back to the 1970s or even 1960s. Though IT is one of the largest items on banks' books, much of it is spent maintaining old systems, rather than developing and implementing new technology.
Faced with technological challenges, bank boardrooms seem unequipped. “Technology competence on board level is not only a necessity, it will soon become indispensable for financial institutions,” said Urs Rohner, chairman of the board of directors at Credit Suisse.
A new report by Accenture analyzed board room technological prowess. The results are not encouraging.
Only three percent of banks' CEOs have professional technological experience and only six percent of board members at banks have professional technological experience.
About 73 percent of banks have only one board member with technological experience or none at all. 15 percent have two board member with technological experience and 13 percent have more than two board member with technological experience.
In North American banks, 12.1 percent of board members have professional technology experience, compared with 5.1 percent for European banks and five percent for Asian banks. Boards of Chinese, Brazilian, Greek, Italian and Russian banks have the lowest technological representation. Less than one percent of directors at Chinese banks — and none of the directors at Brazilian, Greek, Italian and Russian banks — have professional technology experience.
Only three percent of banks' CEOs have professional technological experience and only six percent of board members at banks have professional technological experience.
About 73 percent of banks have only one board member with technological experience or none at all. 15 percent have two board member with technological experience and 13 percent have more than two board member with technological experience.
In North American banks, 12.1 percent of board members have professional technology experience, compared with 5.1 percent for European banks and five percent for Asian banks. Boards of Chinese, Brazilian, Greek, Italian and Russian banks have the lowest technological representation. Less than one percent of directors at Chinese banks — and none of the directors at Brazilian, Greek, Italian and Russian banks — have professional technology experience.