Banks are not able to roll out IT resources fast enough to cater to demographic changes as 27 per cent of millennials prefer not to have a bank, according to Huawei.

The current banking infrastructure cannot roll IT resources timely enough for the changing demographic problem, according to Huawei.

Speaking at its Reshaping IT to Fuel Digital Banking Transformation conference in Hong Kong, Huawei’s global head of financial services industries, Ronald Fons, said according to BBVA Bank 27 per cent of surveyed millennials prefered not to have a bank.

A further 32 per cent said that they had never stepped inside a bank and 73 per cent were more receptive to Apple, Google, and Amazon services.

“One-third said in five years ‘I won’t need a bank’ because of the preference for non-traditional financial services companies are coming in, such as Google and Amazon,” Fons said.

“This is a very critical issue where it’s a demographic problem for the banks and it focusses on what kind of people they’re hiring and where, and how they’re focusing on this kind of customer.

“The current infrastructure cannot handle the agility to be able to roll out IT resources as required.”

Fons also said that transparent pricing and revenue models were also a big issue for banks.

“In many instances customers would like to be able to create their own financial products and bundles and so pricing capability within the bank to offer this kind of service is a major challenge,” he said.