Financial companies seeking new customers through increased investment in technology; Yobota survey results
Banking and financial services companies plan to significantly increase their IT spending over the next 12 months to improve both front-end and back-end technology, according to new research from Yobota found.
The London-based technology company commissioned an independent survey of 250 senior decision-makers at banks and financial services firms. It showed that the vast majority (65%) plan to invest heavily in technology over the coming year, with 67% also planning to diversify the types of technology they use.
Improving the quality of their core technology systems is a priority for 74% of companies. A similar number (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 financial firms intend to improve their customers’ digital experience by updating their website or app. Meanwhile, 63% plan to automate customer interactions through chatbots and robo-advisors.
However, only 48% are confident they have the right approach to adopting new technologies to quickly adapt to changing customer demands in the coming year.
In terms of goals, Yobota’s research found that 73% of financial firms plan to invest in new technology over the next 12 months to improve 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 realize their digital transformation projects.
Ion Fratilou, Head of Sales and Marketing at Yobota, comments, “To stay competitive and meet the expectations of modern customers, banks and financial services companies need to start acting like technology companies. Over the next few years, the ability to act quickly and deliver instant, personalized and flexible services is what will set industry leaders apart from digital laggards.
“On the positive side, our research shows that the industry is taking notice and that companies are investing heavily in new technologies. Importantly, digital innovation takes place on both customer-facing and back-office platforms – it is often the latter that requires more attention.
“Investment in APIs, data analytics and reinventing core technologies suggests that banks want to replace outdated systems with best-in-class technology for a digital future. Meanwhile, the majority remains focused on improving customer interactions and solidifying retention – a cornerstone of long-term success.