New research released today by financial services technology leader FIS™ (NYSE: FIS) reveals that the greatest barrier to UK financial institutions developing digital products, services and operations is regulatory compliance risk.
The findings are from FIS’ global Readiness Report, which shows that, by comparison, the biggest barrier to digital innovation for US firms is complex legacy IT systems, and overall cyber security risk was most prevalent.
Globally, the report found that the operational performance gap between leaders and the rest of the industry is closing, driven by accelerated adoption of cloud technology and automation.
Where this gap exists, Readiness Leaders (the firms that score in the top 20% against the FIS Readiness Index) are focussed on using AI for more complex tasks, such as improving customer experience, boosting cyber security and preventing fraud, while the rest of the industry is using it to improve operational efficiencies, risk and compliance.
Martin Boyd, Head of Capital Markets at FIS said: “Overall, the UK institutions are well-developed in their digital strategies but there is still significant work to be done to modernise systems and adopt new technology to retain their competitive edge.
“Financial services leaders are charting a path to future success by aligning technology, operations and talent to support new business models.”
Other key findings include:
Boyd, continued: “While the capabilities gap is closing, all financial institutions need to leave legacy models behind, move towards a more agile, open innovation model and take a targeted approach to emerging technology to maintain a growth advantage.”
The FIS Readiness Report is published annually, surveying more than 2,000 C-level and senior executives across buy-side, sell-side, insurance firms and new for this year, retail banking firms, analysing firms’ readiness for automation, data management, emerging technology, digital innovation strategy, client value and risk management. The results of the survey form FIS’ Readiness Leaders’ Index.