Improving customer experience has overtaken cost-cutting as the main priority for IT decision makers at British and Irish financial services firms, according to a survey commissioned by Fujitsu U.K. and Ireland.
For the second time in two years, Fujitsu has conducted a major piece of research evaluating the thinking of IT “decision makers” (i.e. those with responsibility for making or shaping major IT purchases) within the U.K. and Irish financial services sectors.
Of the 176 technology leaders surveyed, 28% say that improving customer experience is one of their top three priorities over the next three years, up from 22% in 2012. While a similar percentage (27%) say that reducing costs is a priority, this is sharply down from 51% in 2012.
More than one-third of respondents expect to have more budgetary leeway in the next three years, and there is also a shift in how money is being spent as innovation has gathered momentum, the survey says.
More than two-thirds of respondents want IT staff to focus on more value-enhancing technology initiatives, instead of resolving issues created by legacy systems.
Although nearly three quarters (71%) of financial services organisations claim that they make “full” use of customer data to improve their offering, this suggestion conflicts with the 54% who note that their business purchases supplementary data from third parties, according to the survey.
“Developing a strategy to deal with Big Data, and ensuring that the whole organisation is included on that strategy, will be vital in completing the customer picture,” the survey says.
While businesses in other industries continue to forge ahead with the adoption of technology to remain competitive, the survey finds that the financial services sector can be resistant to move in that direction because of the inherent risk involved.
The survey offers three key takeaways as advice for the financial services sector:
- Security should be a constant priority: Concerns over security continue to hold financial services organisations back. The primary objection to potentially game-changing innovations like Cloud and mobile is the perception that they are insecure. These worries prevent those companies from accessing technology that could help them become more cost-efficient, customer focused and–ultimately–more competitive. While security may not be as simple as flicking a switch from off to on, it nonetheless requires serious attention. The best recommendation here is that FS organisations need to stay abreast of the threats and security challenges facing them, and strive to maintain–or exceed–the pace of those who are engineering those threats.
The pace of new tech adoption needs to gain speed: Strategically address security concerns, and Cloud and mobile seem to stand at a tipping point–and not a moment too soon. The lack of progress in both areas since our last study is noticeable, and we expected to see greater strides taken toward these influential and transformative technologies. Many FS organisations know they are missing out on everything from cost efficiencies to customer loyalty improvements. Unless security issues are dealt with, and these “new” technologies begin to become standard, they will continue to miss out in future too.- A strategic approach to data could grow revenues and cut costs: Knowledge and confidence around customer data and how it is used for maximum impact seems to be high amongst financial services organisations. At the same time, the number of organisations without a defined Big Data strategy and who purchase data from external sources tells a different story. Customer data should present financial services organisations with a compelling way to differentiate and refine their customer offering. Putting a dedicated strategy around this will no doubt help to mitigate spend on information sourced from other parties, and ensure that an organisation knows the characteristics of not just customers, but importantly, its customers.