Outdated Technology Preventing Banks from Investing in Disruptive Technologies, according to Fenergo Survey
8 May 2019 –Fenergo, the leading provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions, revealed that 20% of C-suite executives in banks say that the maturity of their technology infrastructures is preventing them from investing in new, disruptive technologies including big data analytics and Artificial Intelligence (AI) to improve CLM. 67% are not currently partnered with a fintech/regtech provider to improve operational efficiencies and just 40% of respondents have integrated with an external data or Know Your Customer (KYC) utility provider.
The report also highlights that 33% of those surveyed have not invested in any technology to improve client onboarding despite 99% agreeing that underinvestment in technology directly impacts client onboarding and retention. Only 15% have automated the collection of data and 74% believe data management is overlooked strategically despite it being among the top three most critical business concerns.
Marc Murphy, CEO, Fenergo, 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.”
Julia Walker, Asia Pacific Head of Risk and Regulatory Solutions at Refinitiv, said:
“Collaboration with disruptive regtech and fintech providers is crucial for financial institutions seeking to automate the flow of data, streamline KYC and AML compliance processes, while digitally transforming customer experiences.”
This report is based on the findings of a bespoke piece of research carried out by Fenergo spanning 250 C-suite executives across data, technology and compliance, within commercial, business, investment and corporate banks. Respondents were based in banks of varying sizes across the world.
Click here to read the full report.
Fenergo is the digital enabler of client and regulatory technology for financial services. It provides digital Client Lifecycle Management (CLM) software solutions for Financial Institutions including; Corporate & Institutional Banking, Commercial & Retail Banking, Asset Management & Asset Servicing, Private Banking & Wealth Management. Counting 70+ global Financial Institutions as clients, its award-winning CLM suite digitally transforms how Financial Institutions manage clients; from initial onboarding to KYC/AML and regulatory compliance, to data management and ongoing lifecycle KYC reviews and refreshes. Fenergo CLM empowers financial institutions to deliver a faster, compliant and digital customer experience while achieving a single client view across channels, products, business lines and jurisdictions.
Fenergo’s community-based approach to product development allows clients to collaborate on solution design on a global scale. Its rules-driven solution ensures compliance with multiple global and local regulatory frameworks including AML, KYC, SFTR, Tax (CRS, FATCA, 871M), OTC Derivatives (EMIR, Dodd-Frank, MiFID II, Margin Requirements) and data privacy rules (GDPR). It supports the collection, centralization and sharing of client and counterparty data and documentation across the institution and deploys an API-first approach to advanced integration with a host of external KYC, AML and entity data providers, KYC and industry utilities. The solution is underpinned by next generation Artificial Intelligence, Robotics Process Automation and Machine Learning technologies, using advanced OCR and NLP capabilities to extract information, expedite compliance and improve operational efficiencies.
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