New research released today from FIS™
(NYSE: 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 (AI) 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 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.
Forty-nine percent 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, a number that
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.”
The FIS research found that operational leaders are:
-
Embracing the cloud: Nearly half of operational leaders have
migrated to or are planning to put applications in the cloud – nearly
double the rate of the industry as a whole. -
Investing in artificial intelligence: Among the operational
leaders, 26% are using AI – up from 15% last year – to improve the
customer experience and strengthen cybersecurity and fraud prevention.
Only 4% of their peers reported investments in AI. -
Harnessing the power of open application programming interfaces
(APIs): Forty percent of operational leaders have implemented open
APIs to accelerate digital innovation, versus only 26% of the rest of
the industry. -
Focused on client acquisition: Most operational leaders said
they are focused on using technology to drive client acquisition, with
65% ranking it as a top growth objective in comparison to 50% of their
peers.
A complete copy of FIS’s report can be downloaded from www.fisreadinessreport.com.
FIS is a global leader in financial services technology, with a focus on
retail and institutional banking, payments, asset and wealth management,
risk and compliance, and outsourcing solutions. Through the depth and
breadth of our solutions portfolio, global capabilities and domain
expertise, FIS serves more than 20,000 clients in over 130 countries.
Headquartered in Jacksonville, Fla., FIS employs more than 47,000 people
worldwide and holds leadership positions in payment processing,
financial software and banking solutions. Providing software, services
and outsourcing of the technology that empowers the financial world, FIS
is a Fortune 500 company and is a member of Standard & Poor’s 500®
Index. For more information about FIS, visit www.fisglobal.com.
Follow FIS on Facebook (facebook.com/FIStoday),
LinkedIn (linkedin.com/company/fis)
and Twitter (@FISGlobal).
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