Eight in 10 U.S. bank board members and executives said that their banks had increased their technology budgets in 2022, with cybersecurity being a key area of investment, according to a new report by Bank Director Magazine. The report said participating banks had raised their tech budgets by a median 11% over the past year, with 45% of respondents saying their institutions rely on outdated technology. A total of 138 board members and bank executives participated in the survey.
Cybersecurity was the primary focus for investment, with 89% of respondents identifying it as an area where their banks had deployed new technologies or upgraded capabilities in the last 18 months. During the same time period, 63% implemented or upgraded payments capabilities to improve the customer experience while 54% focused on enhancing digital retail account opening, according to the report.
Most respondents said their banks employ high-level executives focused on technology, particularly in the form of a chief information security officer (44%), chief technology officer (43%) and/or chief information officer (42%). Few reported having a chief data officer or data scientist on staff, despite almost half expressing concerns that the bank doesn’t effectively use or aggregate data.