Banking and financial services firms plan to increase their IT spend significantly over the coming 12 months to improve both front and back-end technology, new research from Yobota has revealed.
The London-based technology company commissioned an independent survey among 250 senior decision-makers within banks and financial services companies. It showed that the vast majority (65%) plan to invest heavily in technology over the coming year, with 67% also planning to diversify the kinds of technologies they use.
Improving the quality of their core technology systems is a priority for 74% of firms. Similar numbers (73%) plan to invest in better data analytics to enable more informed decisions, while 67% will invest in application programming interfaces (APIs), and 65% in payment technologies.
Three-quarters (74%) 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% 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%) 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, comments “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 quickly 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“Investment in APIs, data analytics, and the reinvention of core technologies suggests that banks are keen to replace outdated systems with best-in-class technology in preparation for a digital-first future.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.”