Banking and financial services firms plan to step up their tech investments in the coming 12 months to improve both front and back-end technology.
In fact, nearly three in four financial institutions has made improving the quality of their core technologies a priority, while 65 per cent of financial services players plan to pump more money in new technology and to diversify the kinds of tech they are currently using.
These findings are the result of a survey among 250 banking and financial services companies into their investment priorities for the next twelve months, carried out by London-based tech company Yobota.
Improving the quality of their core technology systems is a priority for 74 per cent of firms. Similar numbers (73 per cent) plan to invest in better data analytics to enable more informed decisions, while 67 per cent will invest in application programming interfaces (APIs), and 65 per cent in payment technologies.
Three quarters (74 per cent) of banks and finance firms intend to improve customers’ digital experience by upgrading their website or app. Meanwhile, 63% plan to automate customer interactions through chatbots and robo-advisors.
However, only 48% are confident that they have the right approach to adopting new technology to ensure they can adapt quickly to changing customer demands over the coming year.
In terms of goals, Yobota’s research found that 73 per cent of finance companies are looking to invest in new tech over the coming 12 months with a view to improving their ability to acquire new customers, with 67% doing so to increase sales to existing customers.
Three in five (59 per cent) said they intend to pursue a partnership with a technology provider to achieve their digital transformation projects.
Ion Fratiloiu, Head of Sales and Marketing at Yobota, said: “To remain competitive and meet the expectations of the modern customer, banks and financial services firms must begin to act like technology companies. Over the coming years, the ability to move quicky and deliver instant, personalised and flexible services are what will stand industry leaders apart from digital laggards.
“Positively, our research shows that the sector is taking note and businesses are investing heavily in new technologies. Importantly, digital innovation is taking place across both customer-facing and back-office platforms – it is often the latter that requires more attention.
“Investment in APIs, data analytics and the reinvention of core technologies suggests that banks are keen to replace outdated systems with best-in-class technology in preparation for a digital-first future. Meanwhile, the majority remain focussed on improving customer interactions and solidifying retention – a cornerstone of long-term success.”