More than half of financial services companies plan to accelerate their move to next generation technology to help navigate the Covid-19 fallout, according to a new global survey from global technology firm Broadridge Financial Solutions.
Canvassing 500 financial services C-Suite executives and their direct reports, the report showed that almost all financial services companies expect the pandemic to affect operating models and strategy toward next-generation technology.
In the next six months, 63% anticipate sharpening their focus on their cybersecurity and risk management while 60% will be looking more intently at enhancing multi-channel client communications.
In addition, 53% want to leverage the new tools to improve customer engagement and experience while 45% are seeking to significantly cut costs.
“Financial services players have shown they can adapt and change during the pandemic,” said Tim Gokey, CEO of Broadridge. “Going forward, they will continue to drive digitisation and mutualisation to improve client experience, resiliency, and cost. 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.”
It is not surprising that the current environment is forcing many financial institutions to re-prioritise their investment strategies. The success of interactive digital technologies in managing the pandemic explains why 58% expect to increase their investment in this space while 54% are set to do the same in artificial intelligence (AI). In addition, nearly half intend to enhance their data gathering and analytical skills.
The pandemic has also changed the role of fintech service providers, with 70% of respondents stating that their ability to offer innovative uses of next-generation technology is now more important while around half believe it has been a driver behind the growing shift to mutualise – share or outsource – processing functions to reduce costs and increase resiliency.
These trends were supported more by commercial and investment banks as well as broker-dealers at 54% and 49% respectively, than their buyside counterparts which polled at 42%.