Search
 

Technology ROI still elusive, new report says

PHOENIX, Ariz. - As credit unions continue to invest in sales and service technologies, they might find interesting what a well-known consulting firm's latest study has found out about ROI in that area. Basically, technology spending hasn't necessarily been translating to bolstering the bottom line, according to the "Mid-Sized Bank...

By Staff Writer | Updated on May 28, 2002

<p>PHOENIX, Ariz. – As credit unions continue to invest in sales and service technologies, they might find interesting what a well-known consulting firm’s latest study has found out about ROI in that area. Basically, technology spending hasn’t necessarily been translating to bolstering the bottom line, according to the “Mid-Sized Bank Study 2002″ just released by Cornerstone Advisors. The consulting firm, which also includes a number of large credit unions on its client list, studied banks of $1 billion to $20 billion in assets for this report, and says that it found that these firms overall “have not improved productivity in key sales and delivery processes, despite significant investments in technology” since a similar study in 1999. Cornerstone Advisors found back-office functions in general showed productivity improvements in the past three years, but that only marginal improvements or declines could be found in front-office processes, including teller processing, loan origination and call center operations. Many financial institutions have “invested heavily in their PC and network infrastructures, as well as Windows-based applications that surround back-end legacy systems, but we’ve found that these applications have not relieved the administrative load on the front line,” said Scott Sommer, Cornerstone Advisors president and CEO. He also said the study shows the need “to better integrate technology investments with accompanying process improvements, measurement systems and cultural changes.”</p>

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.