Technofear in Financial Services
Ask yourself these questions:
- Does the thought of a technology overhaul make your head hurt?
- Are your systems outdated but you don't know how to improve them?
- Are your clients demanding more from you digitally?
- Do you know what the tech you are paying for actually does?
- Fed up with tech jargon you don’t understand?
- Can you say your tech allows you to comply with regulatory requirements?
- Do you need better integration between your systems?
- Are you finding it hard to see or understand the return on investment?
These issues are common in the Financial Services space, and you are not alone in your concerns. We work with clients everyday who want to fully embrace technology but don’t know where to start.
6 top tips to help transform your tech:
1. Don’t bury your head in the sand
The thought of updating your technology or even knowing where to start can be a daunting prospect. Not to mention the cost and disruption to your daily business. It is far too easy to bury your head in the sand, continue as you are and carry on with the day to day hoping the issue will go away. Meanwhile your competitors are advancing digitally, offering a better experience and your clients may start to look their way. There is also the consideration of regulatory requirements and whether your existing tech and processes conform. The Financial Services sector is really starting to embrace the need to evolve technology and those that ignore it will be left behind. To ensure that your business can scale and remain competitive it’s time to start reviewing your existing technology setup internally and for clients, what its purpose is and whether it is still up to the job.
2. Embrace technology
For some Financial Services companies the thought of letting technology do more of the work can be a daunting thing. The reality is that this is the way the market is going and the way that businesses need to move to remain competitive. There are a whole new generation of investors that expect an online, digital service. You need to future proof your business and invest now to ensure that your company is still around for years to come. This doesn’t mean that you need to move all processes fully online, many clients still want a mixture of online but also with the human touch. You need to find out what will work best for your business and clients.
3. Understand your problem first
Many companies make the mistake of going out and buying the latest tech that they think is going to change their business, only to discover once it’s implemented that it doesn’t fit their business model and solve their issues. You need to recognise the need for an overhaul but acknowledge that there is no one size fits all solution. Many have been left with a system that is no longer up to scratch, leading to the need to bolt on tooling from different third parties. This doesn’t guarantee it will solve the problem, often adds to overheads and increases inefficiencies because the different systems don’t speak to one another. You can’t just use tech as a solution. You need to understand the problem first.
It’s important to start by looking at all the different systems you use and understand what works, what doesn’t and the purpose behind the change. If you don’t understand the problem, then it’s impossible to find a solution. You need to speak to your team to find out where the inefficiencies are before you can fully start to fix the issues. If you don’t know where to start and need some advice, then you can work with independent third parties who will assess your tech and give advice on where improvements can be made.
4. Find out what your clients want
It’s no good investing in new client facing technology unless you know what your clients need from you. Recent research has shown that clients want more digitally from their Wealth Managers and Financial Advisers but what exactly do your clients want and expect from you? It’s worth speaking to or surveying them to see whether they want a fully online experience or a mixture of human and online, and what information they want at their fingertips. Perhaps they may want an app to view their portfolio and investments at any time or maybe they want a more online onboarding experience if you are still paper based. Until you find out the requirements then you could potentially invest in a solution that isn’t fit for purpose and your clients could go elsewhere to get what they need.
5. Make it work on your terms
When going out to look for new tech solutions there will be a lot of options, and it can be overwhelming. You need to ensure that the solution fits the requirements of you and your clients. Don’t cut corners or sacrifice features that you need to fit with a particular product. Adjusting your processes and procedures to work with a product also isn’t recommended if it doesn’t give you what you need. Lots of products can be customised to fit your way of working or you also have the option to build your own solution. Another avenue is integration between different technologies to then give you the information you need. Make sure that you don’t end up with a solution that will ‘make do’, it could make the difference between your business succeeding or failing.
6. Understand the costs involved
Don’t make the mistake of investing in new technology without understanding the full costs attributed to it. Question any new tech coming into the business to find out what it will be used for, how it will be used and if it is really needed. You need to ensure that you will get a return on investment from any technology solution you invest in. It is also not just the upfront cost you need to consider. You need to find out if you have people internally who know how to set up, run and maintain it or if you need to hire additional resource, or even outsource support to a third party. As well as this there may be monthly licensing costs. All of these things should be thought about prior to purchasing any new tech.
If all of this is ringing true for you and you would like some advice, then Navos can help.
Our team has over 120 years collective experience working with technology at Hargreaves Lansdown. We understand the issues and frustrations that Financial Services businesses face when it comes to tech and can help guide you. Every business is unique. We will work with you to understand your business challenges and create a bespoke solution. Our team of experts can help you figure out how you need to update your digital strategy in an uncomplicated, jargon free, friendly manner. Then help you put the plan into action.
An understanding of the regulator is also vital when it comes to implementing new tech and Navos has many years of first-hand experience in this area. It would be best to have a conversation with us first before it happens with the regulator. We can independently review your tech set up and help you uncover the issues. Then we can support you to create a new technology strategy and implement or build any new tech that you need to grow your business and keep your clients happy, all while remaining compliant with industry regulations.
