Technological disruption identified as a key concern
While financial services firms in the UK are confident in their current technology, many are hesitant to adopt new innovations due to risk aversion, according to new research from Davies.
The survey, conducted by Consulting at Davies, polled 501 senior decision-makers across the financial services sector. It found that 78% of respondents were satisfied with their firm’s use of technology for internal processes, and 86% expressed confidence in customer-facing technology.
However, despite this confidence, 59% of respondents described their firms as risk averse when it came to adopting new technologies. Additionally, 38% cited a lack of digital skills as a barrier to technological advancement.
Cybersecurity and technological disruption were identified as key concerns by 38% and 26% of respondents, respectively.
Investing in technology remains a priority for 42% of financial services firms, ranking second only to improving operational efficiency.
Kurt Drozd (pictured), director of financial crime and regulatory compliance at Consulting at Davies, warned that firms risk falling behind if they do not embrace emerging technologies like artificial intelligence and machine learning.
“There’s a real risk of complacency if they don’t adopt a more dynamic approach to innovation,” Drozd said. “Strong internal and customer-facing systems are essential components of a successful financial services firm, but risk aversion is holding many businesses back from capitalising on the new opportunities that technological advancement is 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.
“By embracing emerging technologies, firms can address the key challenges confronting them like cybersecurity and skill shortages to enhance their competitiveness and position themselves for future growth.”
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