A new industry research undertaken by Avaloq has revealed that around 55% of the banking and wealth management professionals term AI, robotics and automation as important developments with the potential to change the global financial services industry in the near future. 34% and 26% of them considered the rise in the usage of open and collaborative platform and increase in DLT and cryptocurrencies respectively as additional key developments in the financial market.
Martin Greweldinger, Group Chief Product Officer, Avaloq 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.
The study revealed the three current areas showing improvements in terms of digital infrastructure including compliance measures owing to the changing regulations (41%), ensuring efficient cybersecurity (42%) and customer experience (46%). Around 41% of those surveyed stated customer experience as their preferred competitive advantage as compared to 19% for operational efficiency. 42% of the respondents claimed that out of all the key industry trends, ‘one core platform combined with single add-on applications’ will be the most popular.
“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,” he added.