Majority of Buy-side and Sell-side Leaders Say They Lack Tech Capabilities to Drive Growth, New FIS Report Reveals
June 27 2017 - 8:30AM
Business Wire
Key facts
- The first FIS Readiness Report assesses
growth readiness of the buy- and sell-sides of the financial
services market across areas such as digital innovation, automation
and emerging technology.
- Survey finds most senior executives
believe their financial institutions lack technology to support
growth plans.
New research released today by financial technology leader FIS™
(NYSE: FIS) revealed that only 25% of buy-side and sell-side
executives surveyed believe their firms have the technology
capability to support their growth ambitions.
The FIS report also found that firms with the strongest
performance in key operational growth areas, such as automation,
data management and innovation, are significantly more likely to
have grown their assets under management over the past year.
The findings are part of the first FIS Readiness Report, “The
Hunt for Growth,” which surveyed 1,000 C-suite and senior
executives across the buy-side and sell-side of the financial
services market. Other key findings of the report were:
- Nearly half (47%) of those surveyed say
the economic outlook will create growth opportunities over the next
year.
- Firms are prioritizing new client
acquisition and better operating margins in the hunt for
growth.
- Half of respondents (50%) say new
client acquisition is one of their top three growth objectives for
the next 12 months.
“The results are compelling because, despite all of the
headlines around fintech disruption and the need to automate, many
financial institutions acknowledge that they are still not where
they ought to be when it comes to embracing technology and
operations,” said Martin Boyd, executive director and head of
I&W Strategy at FIS. “Those firms who are investing for the
future by taking a lead in automation, data and emerging technology
are outperforming their peers in revenue growth, pointing to a
‘tech readiness dividend’ for forward looking buy-side and
sell-side firms.”
The FIS report includes a Growth-Readiness Tracker that scored
firms against six equally weighted operational enablers of growth:
automation, data management, innovation, use of emerging
technologies, talent management and focus on client experience.
The report found that firms that scored at the top 20% of the
Growth-Readiness Tracker are significantly outpacing their
competitors in driving growth. Among these Growth-Readiness
Leaders, the FIS research found:
- 47% have grown assets under management
by 5% or more in the last 12 months;
- More than a third (37%) have
implemented artificial intelligence or machine learning in their
business versus just 6% of the rest of the sector;
- More than four in 10 (41%) growth
leaders are currently testing blockchain technology versus less
than a fifth (19%) of other institutions.
“What is clear from this research,” Boyd added, “is that those
firms that can marry enabling technologies – such as machine
learning, artificial intelligence, blockchain and mobile – with new
business models are reaping dividends in terms of competitive
advantage.”
To read the full report, visit www.FISReadinessReport.com.
About the FIS Growth Readiness
Report
The survey was conducted between March and May 2017, in
collaboration with Longitude Research, of 1,000 senior-level
respondents across the buy- and sell-side of the institutional and
wholesale financial services market and insurance companies.
Sectors surveyed include: Commercial and investment banks, 25%;
Broker-dealers, 15%; Asset managers, 23%; Fund administrators, 14%;
Insurance companies, 16%; Pension funds, 6%. Regions surveyed:
Europe, 30%; North America, 30%; APAC, 25%; LATAMEA, 16%.
Seniority: C-suite, 26%; Head of business unit / Director-level,
74%. Function: Trading and investment, 18%; Risk and compliance,
18%; Operations, 18%; IT, 15%; Finance and treasury, 20%; Sales,
7%; Other, 4%.
About FIS
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, consulting, 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 57,000 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) and Twitter
(@FISGlobal).
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version on businesswire.com: http://www.businesswire.com/news/home/20170627005439/en/
For More InformationKim Snider, 904.438.6278Senior Vice
PresidentFIS Global Marketing and
Communicationskim.snider@fisglobal.com
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