Digital investment

The Credit Suisse report said competition has spurred an over-investment in mobile technology, and that banks are spending too much on digital banking despite rapid growth in customers managing finances on mobile phones and tablets.

According to the article and the Credit Suisse report it cites, yes — banks appear to be spending heavily on digital and mobile banking, to the point where the report describes the investment as excessive given current transaction values.

Yes. The article notes there has been rapid growth in customers managing their finances on mobile phones and tablets, even as the report raises concerns about the level of bank spending on mobile technology.

The article states that mobile banking accounts for less than 10% of the value of digital transactions.

The Credit Suisse report highlighted in the article says competitive pressure is driving banks to pour more money into mobile technology — likely to keep up with rivals — which the report views as leading to over-investment.

While the article doesn't give long-term outcomes, the Credit Suisse finding that banks may be over-spending on mobile tech suggests investors should be aware that heavy digital investment could affect banks' cost structures and returns if spending outpaces the value generated.

The article flags a potential concern — over-investment driven by competition — so investors may want to monitor how banks translate digital spending into transaction value and profitability, rather than panicking based on spending alone.

Based on the article's focus, investors can watch industry reports like the Credit Suisse analysis, follow banks' disclosures on digital investment and transaction metrics, and track whether mobile banking is contributing more to the value of digital transactions over time.