BANGALORE: Infosys, a global leader in consulting, technology and outsourcing, today announced the launch of its Innovation in Retail Banking 2014 report. The sixth annual study, commissioned by Infosys and conducted by Efma, surveyed over 100 retail banks around the world. The latest report has revealed that more banks in fast growing and rapidly developing markets display greater ambition for becoming innovation leaders in delivering superior customer value.  They do this by investing more in research and development, compared to their peers in mature markets.

The study also revealed that banks across the globe, especially from more mature economies, are increasing their innovation investments in 2014 compared to 2013 to keep pace with increasing customer expectations and respond to new market entrants.  While new competitors include established technology companies and telcos, there is increasing collaboration with start-up companies to help drive innovation in banks.

Highlights

· Banks in emerging middle income and relatively high growth countries (such as Brazil, India, Malaysia, Russia, South Africa and Turkey) are more likely on average to have an innovation strategy, to be aiming to become innovation leaders, and to be investing in R&D

· Banks are most concerned by the threat from technology companies entering the market (for example Google, Apple and Facebook). The threat from this type of competitor was rated high by 45 percent of banks and has increased in the last 12 months. After technology companies, the most significant threat is perceived to come from telcos and from start-ups