Over 60 percent of banks planning to invest in new technologies

Over 60 percent of banks are planning to invest in new technologies, a study by EY shows. Partnerhips with the new companies who innovate in the field of technology are crucial for getting ahead in business, the EY Global banking Outlook, shows.

Only 11 percent of the global banks executives are forecasting the growth of the financial performance in the upcoming 12 months, the report shows. In 2016, the average rentability of the cpital of banks in Europe and North America decreased. European banks had an averag rentability of below 4 percent, way below that of banks in North America, whose average rentability stayed at over 10 percent.

Despite efforts to cut costs in the past years, operational and administrative costs were reduced on average with only 6 percent between 2011 and 2015, and impact on the profit was cancelled by the revenue decrease recorded in the same period.

„In the Romanian banking system, expectations on the financial performance are somewhat optimistic, mainly based on the drop in risk cost for a large share of banks, but also of stabilizing the net revenue from interest rates ow even a slight increase of these revenues for a smaller part of banks,” Gelu Gherghescu, EY Romania financial services leader.