What’s your Bank’s Technology and Innovation Budget?
Innovation is expensive. And for banks, making sure regulatory and security compliance is met on each technology undertaking only makes those costs larger. But innovation is a must for banks, who are not only competing with fintechs like neobanks, PFMs, and payment companies, but also with the likes of Amazon, Google, and even Walmart.
But just how much are banks and FIs budgeting for new technology? Bank Innovation decided to ask its readers, who mostly are from the digital banking community.
About, 30% or 27 people answered that their organization sets aside 10% of its budget for investing in new technology. About 29% of respondents said their organization invests anywhere between 10% to 25% of its budget to invest in new technology initiatives. While an impressive 21% or 19 respondents said their organization allocates 25% or more of its budget to invest in new technology.
Some organizations tackle innovation and technology through an accelerator program. About 10% or 9 respondents said that their organizations have an accelerator arm to source new technologies, fintechs, and emerging innovations. While 11% said their organization does not set aside a budget for innovation at all.
Bank Innovation’s poll was conducted on its site between late October and mid-November. A total of 91 people participated in the poll.
See the full results below:
Earlier this month, Bank Innovation wrote about the positive impact the election of Jared Polis (D) to Governor of Colorado could have on the state’s fintech and cryptocurrency communities. Polis has not only publicly spoken about his interest in cryptocurrency and blockchain, but also co-founded a global network of seed-stage accelerators founded in Boulder, Colorado, called Techstars.
So, Bank Innovation decided to apply the same lens to ascertain what impact our readers from fintech and banking community think this year’s mid-term elections will have on the overall fintech and digital innovation atmosphere in the country.
Want to participate in this poll? Look to the sidebar at right.
