June 26 — Automating key processes and modernizing operating models aids growth for financial services firms, according to new research from FIS, a financial services technology firm out of Jacksonville, Fla.
After surveying more than 1,500 C-level and senior executives across buy-side, sell-side and insurance firms, the company’s FIS Readiness Report found firms that ranked in the top 20 percent, termed Readiness Leaders, had achieved 3.88 percent average revenue growth over the past 12 months, compared to the 2.12 percent growth for respondents in the remaining 80 percent. Moreover, 80 percent of the Readiness Leaders have fully and nearly fully automated their key processes, but less than half of the other respondents can say the same.
Results of the study found the most discernible link to stronger revenue growth was digital innovation strategies, followed by automation and emerging technology. However, financial institutions’ use of digital innovation strategy ranked as 5.5 out of 10 on FIS’ performance index, explaining some of the weaker performance scores across the industry.
“Our research shows that financial services firms can increase their abilities to accelerate their growth if they evolve their traditional operating model of data management, efficiency and risk management into one built on digital innovation, emerging technologies and advanced automation,” said Martin Boyd, head of institutional and wholesale at FIS. “Based upon our research, those firms that have been able to expand their focus and modernize their operating model should be well-placed for success in the future.”
Despite lower levels of innovation across the industry, FIS found that financial services executives worldwide are more confident in their underlying technology and operating models this year than they have been previously. Almost half (47 percent) would describe their operations function as “strong enough to support their growth plans this year,” compared to just 28 percent in 2017.