Asset Management
Financial Services in 2020 & Beyond
2020 Financial Services Digital Transformation Survey
We surveyed 100 C-suite executives at middle market financial services organizations across the asset management, financial institutions and insurance sectors. Responses were provided prior to the COVID-19 pandemic, so some near-term plans for implementation have likely been impacted. But as organizations seek to optimize processes, digital innovation has never been more important. Here are the top five insights about digital transformation for financial services organizations in the next year and beyond.
Choose your view
Financial Institutions
Insurance
Improving the Customer Experience
Modernizing IT Systems
Managing Change During Transformation
Bolstering Cybersecurity
Enabling Digital Innovation
Whether they serve institutional investors, retail investors or both, asset managers realize the importance and urgency of improving the customer experience (CX)–although the economic downturn may impact the near-term timeline for implementation. Successfully deploying the right digital initiatives can provide a seamless cross-channel interaction for investor clients and proactively address their unmet needs.
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For digital transformation to succeed, change management must address three key areas across the organization: the human element, functional element and technical element. This requires change leadership to engage and empower stakeholders; organizational planning to execute functional changes in operations; and implementing the technical elements that enable the business to sustain change. Through this, an asset management organization can achieve digital adoption. However, underinvestment will likely pose an even greater challenge in 2020 due to temporarily limited resources.
You shouldn’t drive a sportscar on a rutted dirt road, and you shouldn’t deploy digital projects on a clunky legacy IT system. Relying on outdated technology can negatively impact organizational agility and resilience, which are especially important during times of crisis. To stay competitive and thwart disruption, asset management organizations must modernize outdated systems to optimize business processes and enable cutting-edge data analytics.
Top Digital Priority in the Next 12 Months
20%
Simplifying/ Modernizing Legacy IT
Digital initiatives can be the springboard for an asset management organization to leap forward with data-driven insights and improved processes. But they can also introduce additional risk if efforts are not made to strengthen cybersecurity and safeguard data. Cyberattacks are increasing in number and sophistication—even more so during the COVID-19 crisis—so successful digital strategy must include robust practices for cybersecurity.
BDO’s 2020 Financial Services Digital Transformation Survey was conducted by Rabin Research Company, an independent marketing research firm. We surveyed 100 C-suite executives at middle market financial services organizations in financial institutions (i.e., banks, credit unions and other lenders, such as online and mortgage lenders); asset management (i.e., portfolio management, investment funds, broker-dealers and securities brokerages); and insurance (i.e., carriers, brokerages and agencies). Responses were provided in November 2019, prior to the COVID-19 pandemic.
Methodology
Executive Titles
Annual Revenues
$751 Million to just under $1 Billion
39%
$1 Billion to just under $2 Billion
22%
$2 Billion to $3 Billion
6%
$501 Million to $750 Million
26%
$250 Million to $500 Million
7%
Tech
42%
Non-Tech
58%
Chief Information Officer or Chief Information Security Officer
Chief Executive Officer
9%
Chief Financial Officer
23%
Chief Operating Officer
11%
Chief Marketing Officer
Chief Technology Officer or Chief Innovation Officer
Line of Business Executive
focus on Asset Management
select a different view
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say improving CX is their top digital priority
CX Priority
Current CX Focus
Future CX Focus
19%
say improving CX is a digital objective for the next 12-18 months
69%
Focus areas for current CX improvements:
Quality of Customer Support
#1
Speed of Customer Support
#2
Consistency
Personalization
#4
User Friendliness/ Design
#5
#3
Focus areas for CX improvements in the next 12 months:
Digital Strategy Business Goal in the Next 12-18 Months
Focus Area of a Current Digital Transformation Project
56%
Modernizing IT Infrastructure
57%
Information Technology
Why Digital Initiatives Fail
Lack of Skills/Training
48%
Underinvestment
37%
Employee Pushback
Poor Communication
24%
Lack of Leadership
30%
Interoperability
41%
Click each circle to learn more.
43%
33%
65%
Bolster Cybersecurity
Cybersecurity Concerns
Cyberattacks or Privacy Breaches
Biggest Challenge in Proceeding with Digital Initiatives
Top Digital Threat in the Next 12 Months
Achieving digital adoption is an overarching goal in all digital transformation strategies. But it’s important to identify the specific technologies that deliver the greatest impact for businesses in your industry. These are the digital enablers that asset management organizations are currently deploying.
Cloud Computing
Advanced Analytics
AI & Machine Learning
Internet of Things
Robotic Process Automation
Blockchain / DLT
3D Printing
Extended Reality
Digital Enablers Currently in Use
17%
28%
44%
72%
Energy
Healthcare
Industry 4.0
Retail
Technology
General
Whether they serve commercial clients, consumer clients or both, financial institutions realize the importance and urgency of improving the customer experience (CX)–although the economic downturn may impact the near-term timeline for implementation. Successfully deploying the right digital initiatives can provide a seamless cross-channel interaction for customers and proactively address their unmet needs.
For digital transformation to succeed, change management must address three key areas across the organization: the human element, functional element and technical element. This requires change leadership to engage and empower stakeholders; organizational planning to execute functional changes in operations; and implementing the technical elements that enable the business to sustain change. Through this, a financial institution can achieve digital adoption. However, underinvestment will likely pose an even greater challenge in 2020 due to temporarily limited resources.
You shouldn’t drive a sportscar on a rutted dirt road, and you shouldn’t deploy digital projects on a clunky legacy IT system. Relying on outdated technology can negatively impact organizational agility and resilience, which are especially important during times of crisis. To stay competitive and thwart disruption, financial institutions must modernize outdated systems to optimize business processes and enable cutting-edge data analytics.
36%
Achieving digital adoption is an overarching goal in all digital transformation strategies. But it’s important to identify the specific technologies that deliver the greatest impact for businesses in your industry. These are the digital enablers that financial institutions are currently deploying.
8%
40%
60%
16%
focus on Financial Institutions
32%
84%
80%
52%
Lack of Skills / Training
Digital initiatives can be the springboard for a financial institution to leap forward with data-driven insights and improved processes. But they can also introduce additional risk if efforts are not made to strengthen cybersecurity and safeguard data. Cyberattacks are increasing in number and sophistication—even more so during the COVID-19 crisis—so successful digital strategy must include robust practices for cybersecurity.
68%
Whether they serve commercial businesses, consumers or both, insurance organizations realize the importance and urgency of improving the customer experience (CX)–although the economic downturn may impact the near-term timeline for implementation. Successfully deploying the right digital initiatives can provide a seamless cross-channel interaction for customers and proactively address their unmet needs.
For digital transformation to succeed, change management must address three key areas across the organization: the human element, functional element and technical element. This requires change leadership to engage and empower stakeholders; organizational planning to execute functional changes in operations; and implementing the technical elements that enable the business to sustain change. Through this, an insurance organization can achieve digital adoption. However, underinvestment will likely pose an even greater challenge in 2020 due to temporarily limited resources.
You shouldn’t drive a sportscar on a rutted dirt road, and you shouldn’t deploy digital projects on a clunky legacy IT system. Relying on outdated technology can negatively impact organizational agility and resilience, which are especially important during times of crisis. To stay competitive and thwart disruption, insurance organizations must modernize outdated systems to optimize business processes and enable cutting-edge data analytics.
10%
29%
14%
5%
90%
focus on INSURANCE
76%
67%
38%
Digital initiatives can be the springboard for an insurance organization to leap forward with data-driven insights and improved processes. But they can also introduce additional risk if efforts are not made to strengthen cybersecurity and safeguard data. Cyberattacks are increasing in number and sophistication—even more so during the COVID-19 crisis—so successful digital strategy must include robust practices for cybersecurity.
Achieving digital adoption is an overarching goal in all digital transformation strategies. But it’s important to identify the specific technologies that deliver the greatest impact for businesses in your industry. These are the digital enablers that insurance organizations are currently deploying.
52 %
62%
71%
