Financial Services Firms
with Advanced Technology Models
Continue to Outgrow Peers
New research released recently from FIS™ (FIS) found that while the financial services industry is growing more confident overall in its underlying technology, the firms with the most advanced technology operating models continue to outperform their peers in terms of revenue growth, driven by accelerated adoption of cloud, artificial intelligence, and other emerging technologies.
The third-annual FIS Readiness Report surveyed more than 2,000 senior executives from retail banks and buy-side, sell-side, and insurance firms. Respondents were asked to assess their organization’s capabilities across six operational pillars ranging from the use of automation and emerging technology to client service and risk management. Organizations that ranked in the top 20% across these pillars – the operational leaders – were studied as to how their investment priorities differ from their peers.
49% of the executives surveyed – nearly double the number from the 2017 report – said they were confident they have the right technology in place to support their growth ambitions. That 49% climbs to 71% for operational leaders. Even more, operational leaders continue to outpace the rest of the industry in their adoption of the cloud, artificial intelligence, and other emerging technologies. Importantly, the leaders also grew their revenue more than twice as fast as their peers (3.3% revenue growth versus 1.5% for the rest of the industry).
“Our 2019 research indicates that the industry’s growing confidence in its underlying technology to drive growth may be misplaced as operational leaders continue to sharpen their competitive edge over the rest of the pack,” said Martin Boyd, head of Capital Markets at FIS. “Particularly striking is the way these operational leaders are pivoting their innovation strategies away from operating efficiencies and moving towards emerging technologies to enhance service and grow their customer bases. For the rest of the industry, there’s a lot of catching up to do.”