Greater investment in technology throughout the pandemic has led to widespread benefits for banking and financial services firms, research from Yobota has revealed.
The London-based technology company commissioned an independent survey among 250 senior decision-makers within banking and financial services companies. It found that 73% are confident in their business’ ability to withstand future disruptions as a result of having invested more heavily in technology during the pandemic.
The vast majority (76%) said their company has now put technology far more at the heart of its operations and business model than was the case 12 months ago.
Almost two-thirds (63%) admitted that, in the past, poor technology inhibited their ability to deliver better products or services to customers. However, 74% said that investing in digital solutions has helped their business to improve the customer experience in the past year.
Four in five (79%) banks and financial firms said embracing new technologies during the pandemic allowed them to successfully pivot their services to suit the current climate.
Improving customer retention and acquisition strategies was cited as another key outcome by 74% of businesses, while 76% pointed towards collecting more accurate data from customers as one of their main motivations for improving the technology they were using during the Covid-19 crisis.
Elsewhere, Yobota’s research found 75% of business leaders in the banking and finance sector had been able to streamline administrative processes by using new technology and 65% had lowered operational costs.
Ammar Akhtar, CEO of Yobota, said: “The pandemic has offered banks and financial services businesses the chance to take stock and evaluate the technology they were using. Clearly issues have come to light, and it is encouraging to see that subsequent investments into technology have paid off, with many firms reaping the rewards in the form of superior customer experiences, more flexibility and lower overheads.
“Evidently, a great deal of progress has been made through various digital transformation projects over the past 12 months – this will certainly put financial institutions in a stronger position to take on new challenges. However, it is important that companies are taking a long-term view. While the banking sector has had to adapt rapidly to the challenges posed by Covid-19, they must also ensure they are investing in technology that will remain of value post-pandemic. This requires a clear technology roadmap and a progressive approach when embracing new solutions.
“Today, technology is undoubtedly a differentiator for businesses across the financial services sector, so even once the threat of Covid-19 abates, companies must maintain a keen focus on digital transformation.”