More Than 70% Of Banks Increasing Innovation Spend Despite Tough Economy: New Study By Infosys & Efma

"Innovation in Retail Banking" report finds mobile and online channels are keys to global success

London, Bangalore – November 12, 2012

Despite conflicting priorities and the economic downturn, banks around the world are still increasing their investments in innovation. These key findings are part of "Innovation in Retail Banking 2012," the fourth annual study commissioned by Infosys, a global leader in consulting and technology, and Efma.

The study of 300 bankers in 66 countries across Europe, the Middle East, Africa, the Asia-Pacific region, and the Americas also found that online and mobile channels are growing rapidly, with banks focused on areas of innovation that will attract new customers and grow revenues.

Key findings of the study include:

Innovation in retail banking 2012
  • 79% of banks see innovation as strategically important to the future success of their business.
  • 76% said that investment in innovation in 2012 has already increased over the previous year, mostly in the areas of channels and customer experience.
  • Bank branches receive the highest proportion of discretionary IT budget at 27%, compared to 26% for online and 20% for mobile – yet there was a consistent view across the regions that online and mobile are the most important channels for innovation.
  • 93% of banks expect to offer mobile payment services and 89% plan to offer bespoke tablet banking applications to customers within the next three years; the area of fastest growth comes from innovations in value-added services such as personalized location-based offers, a space where within three years more than 76% of banks will shift focus to, up from just 8% today.
  • 87% of banks are focused on integration with social media, and 86% on interactive services, such as Web chat, video conferencing, and click-to-call; this highlights that banks are focused on improving the customer experience through greater interactivity.

Patrick Desmarès, Secretary General, Efma, said: "This study – the fourth consecutive year we've carried it out – provides interesting insights as to how banks around the world approach innovation and where they invest their efforts. The growing focus on mobile devices and online innovation reinforces the rapid adoption of these channels. By offering increased interactivity and personalization, they clearly have the potential to drive growth."

Haragopal Mangipudi, Global Head – Finacle, Infosys said "In spite of the challenging economic environment in many parts of the world and the competitive pressures on retail banks, it is very encouraging to see the recognition that innovation is essential to long-term growth. All too often there is the tendency to allow other priorities to slow down the pace of innovation. But banks are acknowledging that they need to innovate to succeed."


About Infosys

Infosys partners with global enterprises to drive their innovation-led growth. That's why Forbes ranked Infosys 19th among the top 100 most innovative companies. As a leading provider of next-generation consulting technology and outsourcing solutions, Infosys helps clients in more than 30 countries realize their goals. Visit and see how Infosys (NASDAQ: INFY), with its 150,000+ people, is Building Tomorrow's Enterprise® today.


About Efma

As a global not-for-profit organisation, Efma brings together more than 3,300 retail financial services companies from over 130 countries. With a membership base consisting of almost a third of all large retail banks worldwide, Efma has proven to be a valuable resource for the global industry, offering members exclusive access to a multitude of resources, databases, studies, articles, news feeds and publications. Efma also provides numerous networking opportunities through working groups, online communities and international meetings. (


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