More than half of global banks expect to see their technology investment budgets rise by over 10% this year as they beef up cybersecurity and push for digital maturity, according to a survey from EY.
The poll of 221 execs at banks in Europe, North America, Asia Pacific and emerging markets suggests a shift in digital attitudes away from regulatory-driven transformation to innovation-led change.
Just 19% of respondents currently consider themselves as either digitally maturing or a digital leader, but 62% aspire to be one of the two by 2020.
The majority (59%) plan to put in the money necessary to achieve this, expecting tech investment budgets to rise by more than 10% in 2018. Nearly half of these plan to purchase technology from a third party, while only 17% intend to make acquisitions to onboard the tech.
But, while innovation is important, enhancing cyber and data security is the number one priority for banks, with 73% planning to invest in technology to mitigate the threat.
Jan Bellens, global banking and capital markets deputy sector leader, EY, says: "In order for banks to weather the performance challenges that lie ahead, they must prepare for a future led by innovation and technology.
"The pace of innovation continues to accelerate, and banks must have a strategy in place to ensure their implementation of new technology is effective."