Thoughts on the 2010 Bankers as Buyers Report:
By Scott Mills
2010 was my seventh year editing William Mills Agency’s annual “Bankers as Buyers.” The historical focus of the report has been to help financial institutions and those companies serving them validate their strategic IT direction, compare investments in technology by type or direct further research. Today, we have narrowed our focus to discuss the trends and conditions that could impact spending in the coming 12 months and beyond.
This year, many of the issues are the same as in 2009. However, they are affecting banks in very different ways. For 
example, while bankers always fret about compliance, 2010 may be the year of the next Sarbanes-Oxley.
This year’s issue of “Bankers as Buyers” includes information that was provided by or originally published by 23 of the industry’s best and brightest analysts, consultants and executives. Here are nine of my favorite thoughts from the report:
- According to an Aite Group study, “The Top Costing Cutting Tactic” of banks is to renegotiate prices with existing providers (54 percent)
- According to IDC Financial Insights, over the next 12 months, “Improving profit margin” is the most important initiative driving IT investments.
- Bill Bradway of Bradway Research thinks banks will hold off on any new regulatory spending until any financial reform legislation becomes final.
- James Van Dyke of Javelin said he is surprised more of the largest banks have not more measures to protect against customer-facing, interactive web pages, such as, “contact us” and “help” pages.
- Jimmy Sawyers of Sawyers and Jacobs, LLC comments on the need for mobile banking to be different experience than just Internet banking on phones.
- Richard Crone of Crone Consulting, LLC says banks need to incorporate the mobile channel in the new accounts process.
- Umpqua Bank has trained 40 employees to respond to complaints via Twitter.
- Quintin Sykes of Cornerstone Advisors Inc. demonstrates that once banks reach a certain size ($7-9 billion), IT spending increases as a percentage of assets.
- Chris Nelson of Zoot Enterprises said many FIs are realizing that their credit scoring models are no longer effective and they need cost effective ways to adjustment more frequently.
Please share the report with friends, leave comments or contact me directly to discuss. Also, see our “Bankers as Buyers” video update below for more information:
