A fifth of financial institutions claim outdated technology infrastructures are holding them back from investing in new solutions such as AI, a study from Fenergo claims.
Fenergo, which develops client lifecycle management (CLM) software for financial institutions, has released its Disrupt the Disruptors report. This is the third and final instalment of reports identifying CLM trends and is based on a survey of 250 C-suite executives across data, technology and compliance, within commercial, business, investment and corporate banks. Respondents came from banks of varying sizes and in different geographies.
The report found that 20 per cent of C-suite executives at banks believe their dated technology infrastructures are preventing them investing into new, disruptive technology like big data analytics and AI, to improve CLM processes.
Additionally, 67 per cent of respondents revealed they are not currently partnered with a FinTech or RegTech provider to improve operational effectiveness. Only 40 per cent of participants stated they had an integrated an external data or KYC service provider.
Going even further, 33 per cent of those surveyed stated they have not invested into technology to improve client onboarding, even though 99 per cent agreed underinvestment in technology directly impacts client onboarding and retention.
Finally, the report revealed only 15 per cent of banks had automated data collection, and 74 per cent of repliers claimed data management is overlooked strategically but is one of he top three most critical business concerns.
Fenergo CEO Marc Murphy said, “Our report findings tell us that the lack of technology investment and maturing infrastructures are creating barriers to digital transformation. By connecting internal and external systems and technologies through specially designed APIs financial institutions can build powerful customer ecosystems without the need for a complete rip and replace.
“Underpinned with a centralised client data strategy, financial institutions can achieve a single client view across all jurisdictions, business units and products. The automated flow of client data between front and back office enables frictionless end-to-end client journeys, regulatory certainty and enables financial institutions to ultimately disrupt the disruptors.”
Earlier in the month, Fenergo revealed plans to bolster its presence in the Middle East and Africa region following it attaining a full license from the Dubai International Financial Centre (DIFC).
The RegTech 100 company also recently released the next generation of its AML and ultimate beneficial ownership tool. Its solution offers a holistic overview of hierarchy relationships, associations, and beneficial owners through interactive analytics and dashboards.
Fenergo gives financial institutions CLM tools which can help them address global KYC and AML regulatory challenges. In addition to this, its community-based approach product development allows companies to implement tools to handle other regulatory challenges such as MiFID II, Dodd-Frank and GDPR.
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