90% of Swiss Banks Prioritise Automation to Reduce Rising IT Budgets

Swiss retail banks are facing intense pressure to control their technology budgets, leading most to prioritise automation and shared platforms over staff reductions.

Researchers from the Institute of Financial Services Zug at the Lucerne University of Applied Sciences and Arts surveyed 42 Swiss retail banks on their technology sourcing challenges.

Costs emerged as the primary concern.

Two-thirds of the institutions described the challenge as very great, while the remaining third called it great.

The survey found that 90% of the banks plan to use process optimisation and automation to reduce their operating expenses.

Cooperation with other banks and service providers is nearly as important, with 86% of institutions looking to shared platforms to ease budget constraints.

“Cost reductions are not only sought through technology, but also through shared infrastructures and economies of scale,”

said Dr. Thomas Fischer, Co-author, Lucerne University of Applied Sciences and Arts.

Simplifying and standardising existing technology infrastructure is also a preferred method for 64% of the respondents.

Staff reductions play a minor role in the cost-saving strategies across the sector.

Only 40% of the banks consider cutting personnel to lower technology expenses.

An equal number of institutions are turning to artificial intelligence as a cost-reduction measure.

Fischer noted that the banks prefer to increase efficiency within their current operations rather than implementing radical structural changes.

Cloud services and the expansion of sourcing partnerships are viewed as complementary strategies, cited by 36% and 33% of the respondents respectively.

The institutions are addressing the budget pressures through careful and continuous planning rather than immediate structural downsizing.

Fischer added that the banks are focusing on cooperation, leaner technology stacks, and gradual automation to achieve their financial goals.

Featured image credit: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Magnific

The post 90% of Swiss Banks Prioritise Automation to Reduce Rising IT Budgets appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.