PNC: Automation Drives Operating Leverage
PNC Financial Services‘ Technology Investment Strategy
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PNC financial Services is balancing technology investments aimed at both maintaining its current investment profile and automating processes. This strategy, as outlined by PNC CEO William Demchak, focuses on optimizing existing businesses and ensuring competitive product offerings and core infrastructure.
PNC’s Approach to Automation and Investment
PNC is strategically deploying technology investments to support its established investment profile,with a portion dedicated to automation. This automation is intended to allow the bank to continue its existing investment strategies without requiring important changes.
According to Demchak, some of the technology spending is “just straight-up automation to allow us to continue the investment profile we’ve had for years.”
Competitive Tech Spending and Infrastructure
PNC’s technology spending in its competitive markets is at least comparable to its peers, and is focused on improving the efficiency of its operations.
Demchak stated that the bank’s tech spend is “at least on par” with competitors and is geared towards ”optimizing the businesses in which it operates.”
Core Infrastructure and Product Competitiveness
PNC believes its product suite is competitive and its core infrastructure is robust, leveraging cloud-native architecture and microservices.
Demchak asserted that PNC’s core infrastructure, built on cloud-native technology and microservices, is “as good as anybody’s,” enabling the bank to efficiently develop new products.