4 in 10 financial services leaders believe recovery may take 2 years

As firms navigate the route to pandemic recovery, transformation is vital but technology is not the only focus

4 in 10 financial services leaders believe recovery may take 2 years
Steve Randall

Financial services firms will accelerate their digital transformation amid ongoing challenges to recovery from the coronavirus pandemic.

According to a global survey from Broadridge Financial Solutions, almost all of the executives polled believe that there will be changes to their operating models and next-gen technology strategies with a split between low levels of change and moderate changes. Just 10% expect large-scale changes.

Almost four in ten leaders believe that business recovery from the pandemic will take between one and two tears.

Although significant cost reductions are cited by 45% of respondents as a priority in the next six months, it is not the most widely-mentioned focus.

Cybersecurity and risk management improvement is the number one priority (63%) followed by enhancing multi-channel client communications (60%) and improving customer engagement and experience (53%).

Technology adoption
Prior investments that were most beneficial in managing the pandemic were interactive digital technologies (72%) – defined as digitizing customer and employee experiences, workflows, and operations along with cloud technologies (59%).

Digital transformation remains an important driver of financial services’ future.

The pandemic has accelerated the adoption of new technologies and 58% of respondents plan to increase investment in interactive digital technologies, 54% plan to increase investment in artificial intelligence (AI), and 49% plan to improve their ability to quickly gather and analyze data moving forward.

Fintechs have gained
The pandemic has fuelled the growth of fintechs and 70% of respondents stated that fintech providers' ability to offer innovative uses of next-generation technology is now more important as a result of the outbreak.

Sharing or outsourcing is now seen as more important among financial services executives, especially among those at commercial and investment banks and broker-dealers (54% and 49%, respectively). Sell-side companies believe this more strongly than buy-side companies (49% and 42%, respectively) and hedge funds were least likely to agree (36%).