Tech-savvy a missing ingredient for bank directors on Chinese banks; number of directors with tech experience at 0.8 per cent
Asian companies who tout their tech credentials lag rivals in US and Britain
The results of a recent global survey to discover how many banks’ boards had members with experience of technology were very surprising.
Only 6 per cent of board members of the world’s top 109 banks have professional technology experience – and only three of those banks have a chief executive with a professional technology background, the survey, commissioned by Accenture, found.
Given how Asian companies often positions themselves as tech-savvy, you might have thought the number would be higher in this part of the world. Think again. Only 8.1 per cent of Australian banks and just 7.5 per cent of Japanese banks have board members with technology experience on their CVs. Compare this to Britain or the United States, where the number is closer to 15 per cent. At the bottom of the ladder are Chinese banks with just 0.8 per cent of directors with professional technology experience.
Historically, apart from the occasional chief information officer briefing, technology has rarely made it into the board room
According to global research conducted by Russell Reynolds Associates, the financial services industry has one of the lowest percentages of digital expertise in the boardroom (13 per cent), behind the health care sector (39 per cent) and the consumer sector (42 per cent).
Banks are a cornerstone of the Hong Kong economy and can no longer allow themselves to be so far behind other industries. In these days of financial technology, no business executive can afford to be labelled a Luddite.
Digital technologies are now regularly used to open new, cost-effective revenue streams. For example, financial services companies are launching mobile banking apps that can reach populations across China, where it would not be feasible (or profitable) to build a comprehensive branch network. This type of disruptive business model is reliant on a fundamental understanding of the power of new technologies.
Historically, apart from the occasional chief information officer briefing, technology has rarely made it into the board room. But technology is now a key issue for management, and the reality is that too many boards are ill-equipped to make decisions about the technology-driven issues confronting their industries. For banks, continually evolving regulatory reporting requirements mean their systems need to communicate efficiently and effectively. Antiquated technology can make compliance difficult at best and in some cases nearly impossible.