Challenges and opportunities for European banks

• 86% of European banks identify the adoption of new technologies as an opportunity to improve their processes.
• For 43% of European banks, the fight against cyber risks, fraud and financial crimes is a driver of technology adoption.
• 71% of respondents consider automation as the main objective to improve their operational efficiency.
• 42% of banks plan to invest in automation and API technologies over the next five years.
• A third (33%) of respondents want to limit manual data entry.

Thomson Reuters® Confirmation, unveils the findings of its annual 2024 survey. Conducted among professionals in the banking and auditing industry, this survey highlights the key challenges and opportunities facing banks in Europe.

Nearly half of European banks  plan to increase investments in automation and API technologies

The survey reveals that 42% of European banks plan to invest more in automation and API technologies over the next five years. For a third (33%) of European banks, these investments are mainly aimed at limiting manual data entry and reducing dependence on outdated technologies.

Adoption of new technologies and risk management: crucial issues for the majority of banks in Europe

According to the study, 86% of banks in Europe are focusing on adopting new technologies to improve their internal processes. More than half (57%) of banks highlight improved management of ESG transformation. In fact, societal and regulatory dynamics encourage financial institutions to integrate sustainable and responsible practices at the heart of their strategy. In an unprecedented geopolitical context, the fight against cyber risks, financial crimes and fraud is also a priority for 43% of respondents. These figures demonstrate a clear desire by financial institutions to modernise their infrastructures to meet current security and regulatory challenges.

Top challenges for European banks / 2024

Automation: a strategic priority for almost three quarters of banks

Improving workflows and automation to increase efficiency are top of mind for banks, with 71% of respondents indicating this as their top organisational goal. In line with this priority, 33% of respondents want to limit manual data entry. In contrast, no respondents plan to connect internal banking systems with those of providers through automation and APIs.

There is significant room for improvement with regard to financial confirmations, i.e. the secure exchange of financial data between banks and audit firms. Currently, banks still spend 48% of their time dedicated to confirmations on their emails and 8% on postal mail.

Top organisational challenges for European banks / 2024

Methodology: the study was conducted in Europe and the Americas, between April and May 2024, among 940 banking and audit professionals. This press release covers European data, unless otherwise stated.