Regulatory demand distract technology innovation
The regulatory compliance demands impacting financial services companies may be diverting key investment in technology, according to new research conducted by the Financial Services Council (FSC) and technology provider, DST.
The FSC-DST CEO Survey, released this week ahead of next week’s FSC Conference in Cairns, found that while the business leaders believed technology spend represented good value for money, regulatory compliance had been a more pressing priority.
Commenting on the findings, DST Bluedoor chief executive, Martin Spedding said the continuing need for financial services firms to address regulatory requirements was leaving them in a difficult position.
“Many CEOs wish they had more resources to direct to innovative projects to ensure future growth and market efficiencies, but ongoing regulatory are absorbing crucial IT spend,” he said.
Notwithstanding the regulatory distractions, the survey found that 73 per cent of financial services chief executives believed technology was a key enabler for delivering innovation, with the top innovation projects being developing new ways of servicing customers, developing new products and improving customer service.
To that end, the survey suggested that 75 per cent of chief executives believed the use of client data would improve products, increase customer service and contribute to strategic thinking.
Spedding said that technology innovations such as implementing mobile applications or web portals and improving internal and back-office processes were essential to better communicate with customers and help firms to maintain or lift market share.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
