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Bryan Yurcan
Bryan Yurcan
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Mobile Hot, Cloud Not in Financial Services

A survey conducted by the Harvard Business Review in conjunction with Verizon looked at technology trends in various industries.

Though most financial services firms consider themselves "fast followers" as opposed to trailblazers when it comes to adopting new technology, they tend to embrace the technology they do adopt and make it central to the business, according to the results of a survey conducted by the Harvard Business Review Analytic Services and Verizon.

The survey polled 672 executives in all industries, including 82 in financial services, on their views on technology. The responses from the financial services professionals indicate an eagerness to adopt new technology, despite the industry's reputation for conservatism.

Some 36% said they were "ahead of their competitors" in use of new technologies, and 68% say they’d "moderately, significantly, or completely changed" their core business strategy in the past three years. Additionally, financial services firms are building new technologies directly into their products and services more than almost any other sector, the survey found. Nearly 75% of financial services respondents said their offerings had at least moderately changed as a result of new technology within the past three years, compared with an average of 68% of the overall survey.

Chart courtesy Verizon
Chart courtesy Verizon

Changing customer expectations are the primary driver behind these transformations, cited by two thirds of respondents. Further, those polled said technology will primarily change customer service functions more so than any other business function.

Read the rest on Bank Systems & Technology

 

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio
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fstechexec
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fstechexec,
User Rank: Moderator
9/24/2014 | 9:45:31 AM
regulations still weigh
Even though the focus is back on the customer, the concerns about increased regulation are still much farther ahead in financial services (62%) than other industrues (33%). That's a huge gap, and says a lot about where firms are still spending $$.
Byurcan
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Byurcan,
User Rank: Author
9/23/2014 | 10:09:25 AM
Re: Customer expectations trumps regulation
Yes, it seems after years of heavy compliance spending after the financial crisis, FIs are looking a bit more at growing the business and innovation now.
Becca L
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Becca L,
User Rank: Author
9/22/2014 | 5:49:44 PM
Re: Customer expectations trumps regulation
Jon, I've been seeing the same. The thought seems to be that banks and finserv have poured tons of assets into regulation for years, and it's time to step back and pray they've invested wisely- that the infrastructre and software is flexible enough to "take it from here" - and refocus on the customer experience. All the regulatory compliance in the world won't matter if the customers have left for competitors!
IvySchmerken
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IvySchmerken,
User Rank: Author
9/22/2014 | 5:07:38 PM
Re: Customer expectations trumps regulation
I agree. From this survey, you're seeing that banks are revamping their technology because the business has to evolve, and they need to please their customers whose needs and expectations are rapidly changing. Regulation is increasing but businesses can't let that paralyze their progress. The other data point that's stuck out is  that commodization and cost savings was a primary factor for 45%. So firms may be taking advantage of commoditized hardware and other standardized services to save costs, to cope with increased regulation.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
9/22/2014 | 4:58:48 PM
Re: Customer expectations trumps regulation
That kind of vibes with what I've seen in some other surveys lately that show banks are growing more focused on their customers now as they emerge from the last few years of regulatory upheaval. Basically banks now understand that a changing regulatory environment is something that they just have to deal with, and business has to go on despite the difficulties that it can create.
IvySchmerken
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IvySchmerken,
User Rank: Author
9/22/2014 | 3:24:27 PM
Customer expectations trumps regulation
We've heard so much about how regulation is driving change in financial services technology. But this article shows that changing customer behavior and expectations was the primary factor for 65%  while increased regulation was the primary factor for 35% in motivating FS firms to adopt new technologies.  With technologies such as cloud and mobile revolutionizing business, it's not surprising that 68% on average said they've modified their business strategy in the past 3 years.
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