Fenergo has published the final installment of its three-part Client Lifecycle Management Trends Report – Disrupt the Disrupters and the findings are rather gloomy in an industry that needs to drive towards digitalisation to sustain success.
According to the research, 20% of C-suite executives in banks say the lack of maturity of their technology infrastructure is preventing them from investing in new, disruptive technologies including big data analytics and Artificial Intelligence (AI) to improve client lifecycle management. Some 67% are not currently partnered with a fintech/regtech provider to improve operational efficiencies and just 40% of respondents have integrated with an external data or Know Your Customer (KYC) utility provider.
The report is based on research carried out by Fenergo spanning 250 C-suite executives across data, technology and compliance, within commercial, business, investment and corporate banks. Respondents were based in banks of varying sizes across the world.
Other headlines from the research state that 33% of those surveyed have not invested in any technology to improve client onboarding despite 99% agreeing that underinvestment in technology directly impacts client onboarding and retention. Only 15% have automated the collection of data and 74% believe data management is overlooked strategically despite it being among the top three most critical business concerns of respondents.
Marc Murphy, CEO at Fenergo, comments: “Our report findings tell us that a lack of technology investment and mature infrastructure are creating barriers to digital transformation.” To improve the situation, he suggests connecting internal and external systems and technologies through specially designed application programming interfaces (APIs) that allow financial institutions to build customer ecosystems without the need for a rip and replace solution. With a centralised client data strategy, firms can then achieve a single client view across all jurisdictions, and automate the flow of client data between the front and back office. Murphy adds: “This enables frictionless end-to-end client journeys, and certainty. It also enables financial institutions to ultimately disrupt the disruptors.”