Recent Accenture research shows a striking lack of technology expertise on bank boards. With only 15 per cent of board members having technology expertise - a modest increase of 10 per cent by 2020 - and 45 per cent of banks with only one or even no technology-savvy board members, this lack of experience threatens to seriously affect decision-making within the industry.
Nicole van Det, Country Managing Director Accenture Netherlands highlights the urgency: "Boards are responsible for implementing technology investments and transformations in a balanced way, carefully considering both growth opportunities and risks, such as cybersecurity, AI and privacy. These can have a significant impact on a bank's financial performance. As banks roll out their technology agendas, the board's technology expertise and oversight must be able to keep up with this pace."
Accenture's research, which analysed the board composition as of 1 June 2023 of more than 1,700 board members at 106 major banks worldwide, revealed some striking insights.
US takes the lead - In the banking sector, the US leads the way with 36 per cent of board members with expertise in technology.
Lack of AI expertise - Although many banks are exploring the application of AI, less than 1 per cent of all board members, or 4 per cent of technology-savvy board members, have experience with AI.
Lack of cybersecurity expertise - Only 2 per cent of board members have cybersecurity experience or expertise.
Gender gap remains persistent - Despite an increase in the number of women in board positions, only 28 per cent of all board members in the banking sector are women.
Technology committee is scarce - The majority of boards in the banking sector, a whopping 85 per cent, do not have a technology steering committee.