Oxford Economics surveyed 90 technology executives in the financial services sector, including meaningful samples from the retail banking, insurance, and capital markets subsectors. The study found 68% of respondents expect that in five years, customers will do most of their saving, investing, and borrowing through non-finance platform companies. In the face of this and other looming challenges, 90% have long-term plans for digital transformation. Further analysis and interviews with executives show how these industries are preparing for the future of digital innovation.
How technology is remaking an industry
RETAIL BANKS: Well-prepared for Digital Innovation
Retail banks consider digital capabilities foundational to their competitiveness—and therefore their success. As fintech firms, online-only banks, and non-financial platform companies move into this segment of the financial services industry, retail banks are making technology a major strategic focus: according to our survey, 87% have a formal, long-term plan for digital innovation.
CAPITAL MARKETS: The Digital Opportunity for Improved Competitiveness
For investment banks, asset managers, and wealth managers, technology plays a leading role in driving business strategy. Anticipating widespread disruption in financial services, many capital markets firms are already investing in new tools and platforms. In fact, 93% of technology executives at capital markets firms say their company has a long-term plan for technology innovation throughout the business.
INSURANCE: Digital Transformation Remaking an Industry
Perhaps more than any other financial service sector, insurance emphasizes personal relationships. Human emotions like trust and compassion often play a central role, both in winning new customers and keeping existing ones. One of the biggest challenges for insurers today is leveraging technology to build and improve their business while maintaining that essential personal touch.