Wealth & Asset Management Firms Are Ahead of Banks in Race to Embrace New Technology – Excelian, Luxoft Financial Services ...
December 20 2017 - 3:00AM
Business Wire
- Cloud migration and automation the
biggest priorities for Wealth Managers in Europe
Wealth & Asset Managers in Europe are closer to embracing
new technologies than their sell-side counterparts because CEOs in
the industry understand the importance of technology within the
business, according to over 200 Information Technology (IT)
executives working in the financial services sector.
Survey results released today by Excelian, Luxoft Financial
Services – the financial services IT consultancy division of
Luxoft, a global IT service provider - reveal that 87% of IT
executives working for Wealth & Asset Management firms believe
their CEOs understand the importance of technology within the
business. In contrast, 75% of IT executives working in banking and
capital markets are frustrated by a lack of understanding of
technology in the boardroom.
On both the buy-side and sell-side, most firms still
understandably spend most of their technology budgets on
implementing regulatory compliance and cyber-security systems.
Despite this, Wealth & Asset Management firms appear to be
taking a longer term view about how technology could impact their
business. 65% of respondents working on the buy-side believe
technology is fundamental to the survival of their business,
whereas only 56% of respondents working in banks agree.
The top priority for technologists working on the buy-side is
moving the business onto the cloud – 81% agree this is a strategic
priority, whilst 76% also believe improving automation is a high
priority.
Whilst both IT departments on the sell-side and buy-side are
concerned about a lack of investment in technology, the
frustrations are more acute in banks – 86% of respondents working
for banks complain about a lack of investment in IT, compared to
77% of those working on the buy-side. Some buy-side firms are
therefore still looking to find a competitive edge, made more
crucial given mounting regulatory pressures, the fee squeeze and
the stubbornly low interest rates in Europe.
“There is clearly a growing chasm between how those on the
sell-side and the buy-side view technology,” said Roman
Trachtenberg, Group Managing Director and Global head of Excelian,
Luxoft Financial Services. “Investment banks have been
bogged down by regulatory compliance costs for the last ten years,
whilst Wealth & Asset Managers have been able to experiment
more freely with technology.
“Balancing technology projects that keep the lights on against
those that encourage innovation and growth has been more of a
strategic priority for buy-side executives. As a result, disrupters
are emerging on the buy-side with firms using technologies like
Alexa to service investors whilst robo-advice is undercutting
traditional business models.”
These latest survey results are part of Excelian, Luxoft
Financial Services’ ongoing campaign to understand the frustrations
of IT executives in the financial sector.
About the Research
Excelian, Luxoft Financial Services commissioned independent
research agency Censuswide to conduct a survey of 202 IT Decision
Makers in the financial services sector, specifically in capital
markets, wealth management and corporate banking in companies with
over 500+ employees; 102 in the UK; 50 in Germany; 30 in
Switzerland; 20 in Austria. The survey was conducted in August
2017. Excelian, Luxoft Financial Services also interviewed eight
senior IT executives at tier one financial institutions under
conditions of anonymity to understand their specific
frustrations.
About Luxoft
Luxoft (NYSE:LXFT) is a global IT service provider of innovative
technology solutions that delivers measurable business outcomes to
multinational companies. Its offerings encompass strategic
consulting, custom software development services, and digital
solution engineering. Luxoft enables companies to compete by
leveraging its multi-industry expertise in the financial services,
automotive, communications, and healthcare & life sciences
sectors. Its managed delivery model is underpinned by a
highly-educated workforce, allowing the Company to continuously
innovate upwards on the technology stack to meet evolving digital
challenges.
Luxoft has more than 13,000 employees across 42 offices in 21
countries within five continents, with its operating headquarters
office in Zug, Switzerland. For more information, please visit the
website.
Forward-Looking Statements
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contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, and Section 21E of the Securities
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subject to, without limitation, the risk factors discussed under
the heading “Risk Factors” in Luxoft’s Annual Report on Form 20-F
for the year ended March 31, 2017 and other documents filed
with or furnished to the Securities and Exchange
Commission by Luxoft. Except as required by
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any forward-looking statements for any reason after the date of
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Luxoft Holding, IncPatrick R. Corcoran, 212-964-9900 ext.
2453Global Director, External RelationsPress@luxoft.comTwitter:
@Luxoft
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