59% of financial services firms admit they are risk averse when it comes to technology
A new survey of senior decision-makers within UK-based financial services companies has found:
- 78% feel their use of technology for internal processes and operations is good.
- Even more (86%) have confidence in their customer facing technology.
- However, almost two thirds (59%) described their firm’s attitude to adoption and application of new technology as risk averse.
New research from Davies has revealed that financial services (FS) businesses are confident in their current use of tech, but risk aversion is holding them back from benefitting from new technologies and opportunities to innovate.
Consulting at Davies commissioned an independent survey of 501 senior decision-makers within UK-based financial services companies. It found that more than three quarters (78%) of respondents feel that their firm’s use of technology for internal processes and operations is good, while an even greater number (86%) expressed confidence in their customer facing technology.
In addition, the survey revealed that investing in technology is a priority for 42% of financial services firms – the second most commonly selected answer (behind improving operational efficiency).
However, almost two thirds (59%) described their firm’s attitude to adoption and application of new technology as risk averse.
Consulting at Davies’ research also found that 38% say there is a lack of digital skills in their business, which could be a drive of this trend. In addition, technological disruption and cybersecurity were highlighted as key challenges for respondents’ companies, by 26% and 38% of firms respectively.
Kurt Drozd, director of the financial crime & regulatory compliance team for Consulting at Davies, said: “The findings from this survey highlight that while financial services firms have confidence in their current technology, there’s a real risk of complacency if they don’t adopt a more dynamic approach to innovation.
“Strong internal and customer-facing systems are essential components of a successful FS firm, but risk aversion is holding many businesses back from capitalising on the new opportunities that technological advancement is creating. In today’s world of business where technology evolves so fast and the successful adoption of emerging technologies—such as Artificial Intelligence and Machine Learning—is often the difference between success and failure, firms that are struggling to embrace these advancements risk being left behind.
“By embracing emerging technologies, firms can address the key challenges confronting them like cybersecurity and skill shortages to enhance their competitiveness and position themselves for future growth.”
