Report: banks increase technology spend — while watching competitors

Community banks nationwide are spending more on technology, a new report shows, partially in response to the pandemic and partially in response to a variety of competitive threats.

Over the past year banks have increased technology spending by a median 10%, according to the report, the Bank Director 2021 Technology Survey, sponsored by CDW. In addition, more than three-fourths of responding bank executives and board members say their institution’s technology budget increased for fiscal year 2021. The median amount a bank spent on technology in 2021 was $1.69 million. It’s a big figure, but, the report posits, might not be enough in the ongoing battle with big banks and a looming battle with fintech firms and non-traditional lenders over customer retention.