The former group CEO of Barclays and founder of core banking startup 10x, was speaking on the release of research conducted among 150 senior decision makers and more than 150 product managers, business analysts and project managers, at banks across eight markets.

The study found that banks across the globe are shedding large numbers of their customer base to rivals. One in eight banking leaders (12%) state they have lost 30-40 per cent of their existing customers due to poor customer experience. Across the board, customer attrition rates are running at 20%.

Commenting on the findings, Jenkins says: “Over my career I have learnt banking is about customers, but the reality is most of the banking industry has overlooked what matters, taking a product-focused approach rather than focusing on the customer."

Not only do senior decision makers within banks recognise they are losing valuable customers, but two-thirds (64%) admit that their slow rate of digital transformation has directly resulted in them missing out on winning new customers.

“Banks often mistake transformation for innovation. Innovation is a linear series of marginal improvements, whereas true transformation is a non-linear step-change in improvements, beginning with a material improvement in customer experience. Many banks might convince themselves that releasing an app or going digital means they have been on a journey of transformation, but the reality is that very few banks are undergoing true change at their core.

Banks are museums of technology, with every generation of software and hardware, much of it now off support and towards end of life. Prioritising digital transformation is critical if they want to stay relevant and compete effectively.”

This direct impact on banks’ bottom lines, coupled with the current economic uncertainty within the banking sector, has resulted in three quarters of the banks surveyed attempting to accelerate their digital transformation this year

Says Jenkins: "The industry is really on the brink of having to undergo radical transformation if it's going to remain relevant to its customers."