In May 2020, FactSet, in partnership with Forbes Insights, surveyed more than 200 investment professionals from around the globe to better understand the competitive landscape their firms currently face, the strategies being adopted to keep up, the role of technology in their processes, and how they anticipate their firm’s approach to technology may change in the coming years.
Our research, executed at the height of the COVID-19 crisis, uncovered several drivers behind the need to transform business processes with innovative technologies. 69% of respondents say they are seeing significantly greater competitive pressure than in the past. Some of the factors driving this change can be seen below.
Amid the scramble to respond, leaders are demonstrating just how much technology can strengthen a business and why accelerating their digital transformation efforts is critical.
The most advanced leaders are already well ahead in technological innovation and, as a result, are seeing deeper insight, higher confidence in decision making, reduced costs, greater agility, and stronger performance. However, as shown in the exhibits below, only 34% of respondents said they were highly satisfied with their firm’s current approach to technology, and only 24% characterized their firm’s technological prowess as far ahead of their peers.
If most respondents understand the potential benefits of technological innovation—fewer routine tasks and higher value-added roles for their workforce to name a few—what’s stopping them from getting there? The common challenges expressed by respondents include a lack of funding for advanced technologies, cybersecurity risks, data privacy rules, and a skills and talent gap.
Knowing how to keep up with a rapidly transforming industry where technology is moving faster than ever is the challenge of the modern-day financial services CTO. This must also be done while empowering investors to find new alpha in a deepening sea of data while revolutionizing the customer experience.
You may be asking, where can I drive differentiation for my firm? Is it enabling my investors with bespoke tools that enhance my investment process? Is it a digital transformation of how we interact with customers or a new and innovative approach to data science that will help them find alpha in places no one else is looking? Perhaps most importantly—can I make that transformation happen inhouse? Do I need to find partners? Are there vendors who can augment my staff for me? Do I need to pivot my headcount from front-office workers to technologists?
Download the eBook to continue reading about how your peers are taking digital transformation head on.