More than half of financial services companies plan to accelerate the implementation of their next-generation technology strategies, according to a new global survey of 500 financial services C-Suite executives.
The research from Broadridge Financial Solutions showed that virtually all financial services companies expect the pandemic to affect their operating model and strategy towards next-generation technology.
Despite talk of technology innovation projects being shelved in the early days of the COVID-19 crisis, Broadridge concluded that “businesses may never return to the old ‘normal’ leaving firms little choice but to accelerate their digital transformation.”
The research backed up this claim, with 58% planning to increase investment in interactive digital technologies in the next six months, and 54% boosting their efforts in artificial intelligence (AI).
“Financial services players have shown they can adapt and change during the pandemic. Going forward, they will continue to drive digitisation and mutualisation to improve client experience, resiliency, and cost,” said Tim Gokey, CEO of Broadridge. “Prior investments in digital, cloud, and mutualised technologies have enabled companies to be more resilient during the crisis, and executives are taking careful note as they plan for the future.”
The results also showed that 63% plan to focus on increasing cybersecurity and risk management, while 60% also said they would look at enhancing multi-channel client communications. Improving customer engagement and experience and making significant cost reductions also ranked high with 53% and 45% of firms, respectively, keeping those factors at the front of their minds.
The pandemic has also changed the role of FinTech service providers, according to the research, with 70% of respondents stating that FinTech providers’ ability to offer innovative uses of next-generation technology is now more important as a result of the outbreak.
With regards to COVID-19, 38% of respondents said they expect the business recovery from COVID-19 to take one-to-two years.
This Broadridge survey included C-Suite executives and their direct reports from 500 financial institutions, mostly made up of banks, broker-dealers and buy-side investment managers.