According to a new survey, greater investment in technology throughout the pandemic has led to widespread benefits for banking and financial services firms, research from London-based technology company Yobota has revealed.
The London-based technology company commissioned an independent survey among 250 senior decision-makers within banking and financial services companies. It found that 73% are confident in their business’s ability to withstand future disruptions as a result of having invested more heavily in technology during the pandemic.
Key findings included:
- Almost two-thirds (63%) struggled to deliver better offerings in the past due to poor tech
- In the last 12 months, 79% successfully adopted new technologies to pivot their services
74% invested in tech during the pandemic to boost customer retention and acquisition
75% have adopted new technology to improve the customer experience
74% have embraced technology to deliver more personalised offerings
As a result, 73% of firms are confident in their ability to withstand future disruptions
The vast majority (76%) said their company has now put technology far more at the heart of its operations and business model than was the case 12 months ago.
Almost two-thirds (63%) admitted that, in the past, poor technology inhibited their ability to deliver better products or services to customers. However, 74% said that investing in digital solutions has helped their business to improve the customer experience in the past year.
Four in five (79%) banks and financial firms said embracing new technologies during the pandemic allowed them to successfully pivot their services to suit the current climate.
Improving customer retention and acquisition strategies was cited as another key outcome by 74% of businesses, while 76% pointed towards collecting more accurate data from customers as one of their main motivations for improving the technology they were using during the Covid-19 crisis.
Elsewhere, Yobota’s research found 75% of business leaders in the banking and finance sector had been able to streamline administrative processes by using new technology and 65% had lowered operational costs.
Ammar Akhtar, CEO of Yobota said: “The pandemic has offered banks and financial services businesses the chance to take stock and evaluate the technology they were using. Clearly, issues have come to light, and it is encouraging to see that subsequent investments into technology have paid off, with many firms reaping the rewards in the form of superior customer experiences, more flexibility and lower overheads.
“Evidently, a great deal of progress has been made through various digital transformation projects over the past 12 months – this will certainly put financial institutions in a stronger position to take on new challenges. However, it is important that companies are taking a long-term view. While the banking sector has had to adapt rapidly to the challenges posed by Covid-19, they must also ensure they are investing in technology that will remain of value post-pandemic. This requires a clear technology roadmap and a progressive approach when embracing new solutions.
“Today, technology is undoubtedly a differentiator for businesses across the financial services sector, so even once the threat of Covid-19 abates, companies must maintain a keen focus on digital transformation.”
