Six in ten (59%) financial services firms have a risk-averse approach to technology, stopping them from benefitting from opportunities to innovate, says consulting firm Davies.
A survey of 501 senior decision makers within financial services firms found that more than three quarters (78%) feel that their firm’s use of technology for internal processes and operations is good, while 86% expressed confidence in their customer facing technology.
Two fifths (42%) said investing in technology is a priority, the second most common answer after improving operational efficiency.
Despite this, 59% said their firm takes a risk averse approach to the application of new technology. In addition, 38% admitted that their company lacks digital skills, while 26% of firms cited technological disruption as a key challenge and 38% cited cyber security.
Kurt Drozd, director of the financial crime and regulatory compliance team at Consulting at Davies, warned there’s a “real risk of complacency” if firms fail to adopt a more dynamic approach to their tech.
He said: “Strong internal and customer facing systems are essential components of a successful financial services firm risk aversion is holding many businesses from capitalising on the new opportunities that technological advancement is now creating.
“In today’s world of business, where technology evolves so fast and the successful adoption of emerging technologies is often the difference between success and failure, firms that are struggling to embrace these advancements risk being left behind.”
Drozd added that by embracing emerging technologies firms can address key challenges such as cyber security and skills shortages to enhance their competitiveness.
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