Over 70% of banks increase investments in innovation, the online & mobile channels see rapid growth - report

According to the report, 79 percent of banks see innovation as strategically important to the future success of their business with 76 percent saying that investment in innovation in 2012 has already increased over the previous year, mostly in the areas of channels and customer experience. In addition, bank branches receive the highest proportion of discretionary IT budget at 27 percent, compared to 26 percent for online and 20 percent for mobile - yet there was a consistent view across the regions that online and mobile are the most important channels for innovation.

The study has also found that 93 percent of banks expect to offer mobile payment services and 89 percent plan to provide bespoke tablet banking applications to customers within the next three years. The area of fastest growth comes from innovations in value-added services such as personalized location-based offers, a space where within three years more than 76 percent of banks will shift focus to, up from just 8 percent in 2012.

Finally, the study has revealed that 87 percent of banks are focused on integration with social media, and 86 percent on interactive services, such as Web chat, video conferencing and click-to-call. This aspect highlights the fact that banks are focused on improving the customer experience through greater interactivity.

The study titled Innovation in Retail Banking 2012, was commissioned by global consulting, technology and outsourcing services provider Infosys and the European Financial Management Association (Efma), an industry association for European financial institutions.