Banks bypass new customer-focused technologies

RFID and Wireless are low priority retail banking technologies

Retail banks are failing to invest in new customer-focused technologies such as wireless and radio frequency identification (RFID) applications, according to research by the Economist Intelligence Unit (EIU).

In a report published last week, the EIU found that banks are investing in the automation of simple transactions, rather than harnessing the value of new technology.

‘Customer relationship management (CRM) tools for automating routine transactions top the list of priorities, but retail banks are less interested in developing niche technology such as biometrics, RFID and wireless networks,’ said EIU report editor James Watson.

‘Automation frees up branch staff to advise on more complex products. Internet banking is still getting the most investment in relative terms; the emphasis is on integrating branch technology with the internet channel.’

Forrester Research analyst Benjamin Ensor says some banks are behind in exploiting new technologies but the challenge is in conflicting investment priorities.

‘Investment in branches, security and CRM are all competing for investment,’ said Ensor.

‘Some technologies such as RFID provide lower returns on their investment than others, and are not always relevant.’

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