Financial services unprepared for technology disruption

Ian Stone, CEO of Vuealta

Leadership teams in financial services organisations ‘do not appreciate the potential impact of technology disruption’ according to new research from connected planning specialist, Vuealta. It found this was true of more than half (52%) of the business decision makers in the sector in the research for its report. Titled The Future of Financial Services: Planning for Every Eventuality, it looked into the array of challenges and disruptors that the industry will face over the next five years.

When asked what the biggest challenges their business would face over the next five years, respondents replied: cybersecurity – 42%; political changes – 39%; regulation and compliance – 36%; data management and privacy – 31%; planning and uncertainty in the market – 20%.
“Now, more than a decade on from the events of 2008, the finance industry is far from settled,” commented Ian Stone, CEO of Vuealta. “It’s chaos at the speed of the digital era. In fact, the next five years are set to be just as dynamic as the previous ten – filled with challenges and disruption but equally, presenting opportunities for those that navigate the period well. To do so, it is crucial that businesses remain calm, proactive and pragmatic. Control what you can control and make sure you can react quickly to the things you can’t.”

Amid the chaos, perhaps the most dynamic event in the industry in recent years, he said, has been the fintech explosion: “It saw global investment of $57.9bn in the first half of 2018 – more than it did in the entirety of the year before – and this looks set to continue,” he said.

Faced with change, Stone said the temptation for many businesses is to take a wait-and-see approach: “Organisations need to understand the environment that surrounds them, have a clear view of what is approaching on the horizon and then connect that to their own business information – enabling them to plot a route to success,” he concluded. “Through this connected planning approach, you can reduce the impact of uncertainty and build realistic, actionable responses to all potential ‘what ifs’. Only then can you be armed with the insight you need, at the speed you require to face the challenges and disruptions that will shape the financial services industry in the years to come.”

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