technology and business issues for not rising fully to this challenge. However, TowerGroup believes that retail banks are now poised for a renaissance
in product innovation - if they embrace these new technology trends and address the challenges inherent in their corporate cultures.
New technology management trends, such as enterprise applications, next-generation system architectures and business process management, are beginning to gain acceptance within banks. As a result, some key inhibitors to technical transformation are starting to decrease. Although radical systems change and subsequent innovation may not occur for a few years, TowerGroup expects the period of 2007 - 2010 to see an increase in relationship products and services that combine elements from traditional banking, insurance, and investment services from sources both internal and external to the bank.
A new TowerGroup research report titled, "Opening the Flood Gates of Retail Bank Product Innovation: Technology Drivers to Realize the Future" by Kathleen Khirallah, research director of the Retail Banking research service at TowerGroup, highlights the three key technology management trends that will enable breakthrough product innovation.