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AI Advancements Are Boosting Tech Investment in the Majority of Financial Services Firms, According to New Research From Seismic

AI Advancements Are Boosting Tech Investment in the Majority of Financial Services Firms, According to New Research From Seismic

New data reveals AI will be indispensable in financial services over the next 5 years, as it helps to provide more personalised customer experiences

A new study from Seismic, the global leader in enablement, has found that almost all (92%) financial services leaders plan to invest in new technologies, predicting a 31% increase in their enablement tech stack budget over the next year. Moreover, 2 in 5 (40%) responadents expect a 40% revenue increase over the next five years by integrating AI into their Go-To-Market (GTM) strategy.

“Changing client expectations and preferences, coupled with the promise of newer technologies such as generative AI, are reshaping the ways financial services companies operate”

More than 330 financial services industry professionals working in Wealth Management, Insurance, Asset Management, and Banking across the United States, United Kingdom, France, Germany, and Australia were surveyed to understand how AI advancements are transforming client-facing teams such as advisors, bankers, relationship managers, and wholesalers.

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Enablement’s responsibilities and tech investments are on the rise

While the majority (94%) of financial services industry leaders already use enablement technology at work, nearly all (97%) respondents said AI advancements and the ways they can bolster enablement efforts are a major driving force behind their increased tech spending. The study found that:

  • Companies that are ramping up their tech investment are doing so to bolster key business functions, such as managing rapid organisational change (60%) and adapting to evolving customer expectations (57%).
  • Nearly all (97%) financial services leaders said AI advancements are a major driving force behind the increase in their tech investment.
  • 95% said their ability to use AI tools at work for enablement tasks, non-enablement tasks, or both is another major factor in investing in new technologies.
  • 92% believe that AI will be indispensable in providing personalised customer experiences in the next 5 years.

“Changing client expectations and preferences, coupled with the promise of newer technologies such as generative AI, are reshaping the ways financial services companies operate,” said Kerry Ryan, CPWA®, Senior Director of Financial Services Industry Marketing, Seismic. “Our new study highlights the undeniable impact that the fusion of AI and go-to-market strategy has on boosting the bottom line. Adopting the right solutions empowers client-facing teams to adapt to evolving client demands, ensuring they can foster the deep, lasting relationships our industry is known for.”

Companies are adapting to better support AI adoption

The survey also revealed that the rise of AI offers more than just day-to-day changes within the sector. As part of this transformation, AI is expected to optimise key industry functions across sales (61%), marketing (61%), and strategy and operations (49%). More importantly, 85% recognise AI literacy as an essential skill for client-facing professionals. As a result, this has prompted firms to focus on developing AI skill sets across their teams:

  • Over two-thirds (69%) of financial services leaders have updated or enhanced/expanded training. More specifically, 91% of financial services leaders are prioritising their own AI literacy to motivate others in their team to use AI and 89% are prioritising the AI literacy of their team.
  • To ensure they have the right people for the job, 40% have evolved their hiring needs to allow for AI-driven transformation.

Technology buy-in is an uphill battle

However, despite concerted efforts to lay the foundation for the success of new technologies, most (92%) GTM financial services leaders continue to experience barriers to adoption:

  • Two-thirds (66%) of GTM financial services leaders have experienced significant barriers to AI adoption, with 42% citing financial resource constraints as a primary obstacle.
  • Over half (56%) said it is difficult to get the necessary buy-in from their team to implement new technologies at their company, with a misunderstanding of the purposes of AI from an executive (39%) and management level (51%).
  • 67% believe generational differences in leadership make it more challenging to get buy-in to implement new technologies at their company, and Gen Zers were 19% more likely than average to say this.

Read More on Fintech : Global Fintech Interview with Jon Briggs, Head of Commercial Product & Innovation at KeyBank

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