Survey results released today by Excelian, Luxoft Financial Services – the financial services IT consultancy division of Luxoft, a global IT service provider – reveal that 87% of IT executives working for Wealth & Asset Management firms believe their CEOs understand the importance of technology within the business. In contrast, 75% of IT executives working in banking and capital markets are frustrated by a lack of understanding of technology in the boardroom.
On both the buy-side and sell-side, most firms still understandably spend most of their technology budgets on implementing regulatory compliance and cyber-security systems. Despite this, Wealth & Asset Management firms appear to be taking a longer term view about how technology could impact their business. 65% of respondents working on the buy-side believe technology is fundamental to the survival of their business, whereas only 56% of respondents working in banks agree.
The top priority for technologists working on the buy-side is moving the business onto the cloud – 81% agree this is a strategic priority, whilst 76% also believe improving automation is a high priority.
Whilst both IT departments on the sell-side and buy-side are concerned about a lack of investment in technology, the frustrations are more acute in banks – 86% of respondents working for banks complain about a lack of investment in IT, compared to 77% of those working on the buy-side. Some buy-side firms are therefore still looking to find a competitive edge, made more crucial given mounting regulatory pressures, the fee squeeze and the stubbornly low interest rates in Europe.
These latest survey results are part of Excelian, Luxoft Financial Services’ ongoing campaign to understand the frustrations of IT executives in the financial sector.
About the Research
Excelian, Luxoft Financial Services commissioned independent research agency Censuswide to conduct a survey of 202 IT Decision Makers in the financial services sector, specifically in capital markets, wealth management and corporate banking in companies with over 500+ employees; 102 in the UK; 50 in Germany; 30 in Switzerland; 20 in Austria. The survey was conducted in August 2017. Excelian, Luxoft Financial Services also interviewed eight senior IT executives at tier one financial institutions under conditions of anonymity to understand their specific frustrations.