A new report by Accenture exposed a bothersome reality: only 3% of global bank CEOs have tech experience. A mere 6% of board directors also have previous experience in this industry. Also, 43% or about two fifths of global banks have zero board members. The percentages were taken from a survey that included 109 major banks across the world.
Richard Lumb, head of financial services at Accenture, says, "Very few banks have technologists on their boards and yet when you look at the big strategic challenges facing their business, particularly from financial technology companies, a lot of banks' revenue is under threat from this area."
He adds, "If your main competition now comes from financial technology companies and not banks and the biggest threat you face is cyber security, then technology has become so ingrained in your business that you really need to know something about it."
If banks are to survive all the technological changes happening around them, some innovation must be implemented. The world is quickly moving to a future where cash will cease to exist and IT solutions will be the standard. Lumb advises that banks quickly adopt tech committees that have a board member in them.
He elaborates a bit more, "Many of the biggest challenges now confronting banking are intimately connected with technology so directors need a robust understanding of technology if they are to make informed decisions,"
Business Wire reported that Accenture, which conducted the survery, defined tech experience as holding major tech positions in the past such as chief information officer, chief technology officer, and other similar positions. Holding a senior responsibility in a tech firm also qualifed as tech experience.
Do you think traditional banks can innovate quickly enough to match future banking methods? Share this article if you think they have a long way to go!
