Perspectives

2020 FEBRABAN Banking Technology Survey

Banks have increased investments in technology by 48%; mobile banking is becoming a key channel for contracting products and financial transactions

The FEBRABAN Banking Technology Survey, conducted by Deloitte to Brazilian Federation of Banks, arrives in its 28th edition in 2019, once again tracing an overview of investments and trends in technology for the financial sector.

22 banks completed the questionnaire, which represents 90% of the banking industry’s assets in Brazil, and

10 banking technology executives were interviewed. Information from public data and research by Deloitte was included, as well as opinions from industry executives.

Main findings

  • Banks have increased investments in technology by 48%, driven by both software and hardware. Total expenditures grew by 24%.
  • Banking transactions grew 11% in 2019 compared to the previous year, while mobile banking transactions increased 19% in the same period, driven by a 41% increase in financial transactions
  • Mobile banking is increasingly becoming a key channel for contracting products and financial transactions, with sharp growth in investment operations, insurance and virtual deposit.
  • Mobile banking clients access their bank 23 times per month , and heavy users who represent 51% of the clients in this channel access their bank 40 times per month
  • Banking transactions in traditional channels branches, ATMs and contact centers maintained their volume , but reduced in terms of total share. Ordinary transactions such as payments and account balance check previously performed at ATMs, migrated to digital channels.
  • In the context of the COVID 19 pandemic crisis, the volume of transactions by individuals through digital channels reached 74%
  • New technological frontiers , such as artificial intelligence, are being exploited by financial institutions, focusing mainly on client convenience and new service models
  • Banks are getting prepared for the Open Banking movement , where ecosystem based business strategies should further accelerate the innovation in the sector.
  • 149 thousand hours of training were provided to prepare 11.4 thousand professionals in agile methods
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