Banks Struggle to Prove Tech ROI, New Survey Reveals – And It’s Hurting Innovation
A recent survey from Bank Director highlights a critical challenge facing the banking industry: a disconnect between technology investment and demonstrable return. Many banks are investing heavily in new technologies, but struggle to accurately measure the impact, leading to concerns about resource allocation and hindering future innovation. This article dives into the key findings and what they mean for your institution.
The ROI Measurement Gap
The survey reveals a notable gap in how banks assess the value of their tech investments. Here’s a breakdown of the key data:
* Only 38% of survey respondents report that their bank actively measures return on investment (ROI) for technology projects.
* 68% admit they don’t measure ROI.
* among the 33% who feel their bank underinvests in technology and innovation, a lack of clear ROI metrics is the biggest roadblock.
This lack of clarity isn’t just a numbers game. It directly impacts a bank’s ability to justify further investment and prioritize the right technologies. Without concrete data, it’s difficult to make informed decisions about where to allocate limited resources.
Falling Short of Tech Goals
Even when banks do set objectives for their technology initiatives, success isn’t guaranteed.
* 56% of bank executives and directors say their organizations establish clear objectives.
* However, 41% of those respondents reported that a tech initiative failed to meet its objectives within the last 18 months.
This suggests that simply having goals isn’t enough. Effective implementation, ongoing monitoring, and a willingness to adapt are crucial for achieving desired outcomes.
Why This Matters to You
These findings point to a broader issue: many banks are operating with a degree of uncertainty when it comes to technology. This can lead to:
* Missed opportunities: Without understanding what’s working, you risk investing in solutions that don’t deliver value.
* Stifled innovation: A lack of demonstrable ROI can make it harder to secure funding for new and perhaps transformative projects.
* Competitive disadvantage: Banks that can effectively leverage technology to improve efficiency,enhance customer experience,and develop new products will be better positioned to thrive in a rapidly evolving landscape.
Addressing the challenge: A path Forward
So, what can your bank do to bridge the ROI gap? Here are a few key steps:
- Define Clear Metrics: Before launching any tech initiative, identify specific, measurable, achievable, relevant, and time-bound (SMART) goals.
- Invest in Data Analytics: robust data analytics capabilities are essential for tracking performance and demonstrating ROI.
- Prioritize User-Centricity: Focus on technologies that directly address the needs of your customers and employees.
- Embrace Agile Methodologies: Agile approaches allow for iterative development and continuous enhancement, increasing the likelihood of success.
- Foster Collaboration: Break down silos between IT and business units to ensure alignment and shared ownership of technology initiatives.
Resources for Further Exploration
* Bank Director: https://www.bankdirector.com/
* Jack Henry & Associates: https://www.jackhenry.com/
* Original Press Release: https://www.prnewswire.com/news-releases/bank-directors-2025-technology-survey-banks-grapple-with-data-ai-maturity-302557863.html
Contact: Emma McMillan-Zapf at [email protected] for media inquiries.
Disclaimer: *This article is based on publicly available information from Bank Director’s 2025 Technology Survey and is intended for informational purposes only
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