Finance firms are spending more on disruptive technology
OVER HALF of financial services firms are increasing investment in disruptive and innovative technologies over the next 12 months to meet the challenge of new market entrants.
Research by specialist recruitment consultancy Robert Half Financial Services found that 54 per cent of traditional financial services firms, such as banks and investment houses, are increasing their spend on disruptive and innovative technologies.
The rise of digital ‘challenger’ business models throughout the financial services sector has had a direct impact on investment in IT solutions.
Financial services firms plan to boost IT spend by 15 per cent in the next 12 months, with multi-million pound investment programmes being implemented to help compete with new FinTech market entrants.
Online investment firms, 26 per cent, and challenger banks, 24 per cent, have been identified as the new market entrants to cause the most disruption to traditional financial services firms in the next year.
The growth in new digital platforms has led to a dramatic increase in the ability of smaller players to challenge established providers.
The vast majority, 91 per cent, of financial services, banking and insurance executives are concerned the growth of the FinTech sector will negatively impact their ability to attract skilled professionals with relevant sector experience, including 35 per cent who say they are very concerned.
The research also found that 85 per cent of executives in the financial services sector are nervous about their ability to retain their own top performers in the face of new FinTech competition.
Luke Davis, vice-president, Robert Half Financial Services UK, said: “Digital transformation plans are ramping up among both the front and corporate offices of financial services firms, largely the result of competition from the FinTech industry.
“This reaction is seeing established firms review their traditional models to offer customers, clients and employees new services using innovative technologies.
“Financial services professionals with experience of managing digital projects, such as enhancing the customer experience through digital technologies for mobile, tablets and wearable devices are in hot demand, particularly for interim roles, as firms seek to create digital solutions that are both innovative and compliant.”