Survey of investments and expenses is in the 2nd stage of the 2022 FEBRABAN Banking Technology Survey, carried out by Deloitte; The study also estimates that the technology budget of Brazilian banks in 2022 will increase by 18% compared to 2021
The total budget of Brazilian banks dedicated to technology, encompassing expenses and investments, is expected to reach, in 2022, R＄ 35.5 billion, an increase of 18% compared to last year, which totaled R＄ 30.1 billion, reveals the 2nd stage of the FEBRABAN Banking Technology Survey 2022, carried out by Deloitte, the largest professional services organization in the world. This estimate was calculated based on the values indicated by the banks participating in the sample.
The 2021 budget amount has already represented an increase of 13% compared to the R＄ 26.6 billion budgeted in 2020 (updated values). Last year alone, technology investments made by the banking sector grew by 27% over the previous year and went from R＄ 8.9 billion to R＄ 11.3 billion, while expenditure in this area increased by 6% – from R＄ 17, 7 billion to R＄ 18.8 billion, totaling the amount of R＄ 30.1 billion, as already mentioned.
“We have cutting-edge, innovative, modern, secure and affordable banking technology for our customers to pay their bills, check their finances and run their business through digital and remote means. All of this is the result of robust and growing investments made by Brazilian banks over the last three decades”, says Isaac Sidney, president of FEBRABAN. “The digitization process is irreversible and it is essential to continue investing in technology to increasingly offer security, convenience and an excellent experience for our customers”, he adds.
The FEEBRABAN Banking Technology Survey showed that, as in previous years, the software budget was in the spotlight of financial institutions in 2021 and amounted to R＄ 17.4 billion, or 58% of the total. The advance in value was 29% compared to the previous year. This expansion is driven by fronts such as Customer Relationship Management (CRM), Open Finance, analytics and big data.
“The result reinforces the banking industry's commitment to the development of new functionalities in services and products and is also related to the expansion of service channels. Some fronts have driven this expansion, such as the implementation of Open Finance, the growing digitalization of consumers and also the modernization of the technological legacy of banks”, says Rodrigo Mulinari, director of the Innovation and Technology Committee at FEBRABAN.
The hardware budget was 27% of the total; Telecom, with 8%. In this edition of the survey, a new category called Information Technology Services was incorporated, which aims to highlight the resources intended for service providers that contribute to the acceleration of development and implementation of solutions and monitoring of results. This category maintained in 2021 the same share in the total technology budget of banks, compared to the previous year, of 7%.
Investments in training
Investments in talent by the banking industry remain a priority for banks. One of the highlights is the volume of contributions and people involved in cybersecurity training, which demonstrates that technology has been incorporated in a context of continuous and effective improvement of security processes and systems operated by banks.
Last year, banks invested R＄5.7 million in cybersecurity training for people, an increase of 138% over the previous year. In 2021, 93.6 thousand people were trained in cybersecurity, compared to 28.6 thousand in 2020 (+ 227%).
There was also an increase in investments in cybersecurity training specifically for IT people, which went from R＄ 158.8 thousand to R＄ 583.7 thousand (+268%), and also in the number of people trained, which grew from 5, 4 thousand to 6.9 thousand (+28%).
This edition of the survey brings an unprecedented indicator on training in agile methodologies. Almost 140,000 people from different areas of the banks were trained on this topic in 2021.
work models
According to the survey, 53% of banks will invest in a home office structure throughout 2022, considering investments in computers, software, communication tools, information security, cloud storage, internet connection and IT infrastructure to improve, ensure and enable the professional's connection in their remote activities. These investments should total more than R＄ 46 million, according to the expectations of the banks participating in the sample.
“The offer of jobs in the virtual or hybrid model has been evaluated by banks as a way to attract and retain the best talent in technology”, says Sergio Biagini, lead partner of Financial Services Industries at Deloitte.
Regarding service models at branches, the survey found that last year, 82% of banks adopted remote work for branch professionals; 73% of the units reduced the hours of service to the public and 55% of the branches operated with professional rotation. In addition, 45% of the banks are thinking of maintaining alternative work models in 2022 (remote work, hybrid models for customer service, professional rotation and/or reduction of customer service hours).
About the FEBRABAN Banking Technology Survey 2021
The FEBRABAN Banking Technology Survey reaches its 30th edition and this year it began to be published in three phases. the first volume highlighted what is the agenda and what are the priority investments of Brazilian banks in technology in 2022 and was released in early April. THE second stage reveals and details the investments made in technology by banks in 2021, and also provides a budget estimate for this year. THE third part, to be released later this semester, will show an x-ray of banking transactions carried out by Brazilians last year. 17 banks participated in the quantitative part of this second volume of the survey, representing 82% of the assets of the banking industry in the country.
Check out the second part of the survey in this link.
