Global technology spending in banking has been rising by 9% annually, reaching $650 billion in 2023, but its benefits remain unclear. Despite this significant investment, the sector faces challenges like declining productivity, unclear competitive differentiation, and rising complexity costs. U.S. banks have seen a decrease in productivity, and spending on technology doesn't always translate to a competitive advantage. Increased regulatory demands and the adoption of AI add to costs, yet the ROI is often hard to measure. To extract more value, banks need to shift from small, fragmented tech projects to outcome-based investments that align with clear goals and demonstrate value to stakeholders.

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