The majority of UK firms are more inclined to play it safe when it comes to integrating technology reveals a new report from Consulting at Davies, the professional services and tech consulting firm.
In its survey of 501 senior decision-makers within UK-based financial services companies, Consulting at Davies found that 59 per cent of firms are risk averse when it comes to adoption and applying new technology. Nonetheless, despite this attitude, 78 per cent feel their use of tech for internal processes and operations is good. A further 86 per cent expressed confidence in their customer-facing tech.
In addition, the survey revealed that investing in technology is a priority for 42 per cent of financial services firms – the second most commonly selected answer (behind improving operational efficiency).
Consulting at Davies’ research also found that 38 per cent say there is a lack of digital skills in their business, which could be a drive of this trend. In addition, technological disruption and cybersecurity were highlighted as key challenges for respondents’ companies, by 26 per cent and 38 per cent of firms respectively.
A risk of complacency
Kurt Drozd, director of the financial crime and regulatory compliance team for Consulting at Davies said: “The findings from this survey highlight that while financial services firms have confidence in their current technology, there’s a real risk of complacency if they don’t adopt a more dynamic approach to innovation.
“Strong internal and customer-facing systems are essential components of a successful FS 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—such as artificial intelligence and machine learning—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.”