Nearly 55% of banking and wealth management professionals believe artificial intelligence (AI), robotics and automation will shape the future of the global financial services industry.
According to research by Avaloq, nearly 34% cited the increasing use of more open and collaborative platforms and 26% cited the rise of distributed ledger technologies and cryptocurrencies.
The research also found that three of the top current areas digital infrastructures are delivering significant improvements in performance include: ensuring compliance under changing regulations, improved customer experiences and better cyber security.
Superior customer experience was singled out as the most competitive advantage for institutions to have in five years’ time. Nearly 41% of respondents cited this as their preferred competitive advantage and 19% for ‘operational efficiency’.
Over 42% of respondents said “one core platform combined with single add-on applications” will be the most popular and effective software strategy on how financial institutions will capitalise on key industry trends such as Artificial Intelligence, automation and the focus on delivering a strong customer experience.
Avaloq group chief product officer, Martin Greweldinger, said: “The digital transformation of the financial services industry has already begun, with many institutions embracing the significant benefits that digital and cloud-based operating models such as BPaaS and SaaS deliver. But it is clear that even bigger changes are arriving, particularly with regards to AI, robotics and automation, which combined with design thinking methodology will enhance the overall customer experience. Avaloq believes this will profoundly change and improve the way financial services are delivered across all customer segments.
“As our research confirms, in this environment and to remain competitive, institutions will continue to move to scaleable, highly efficient and adaptable digital platforms that ‘future proof’ business models in a fast-changing, digitising market. These platforms will allow banks and wealth managers to grow and partner seamlessly with a host of third parties and fintechs.”