Wealth and Asset Management Firms Are Ahead of Banks in Race to Embrace New Technology – Excelian, Luxoft Financial Services says
December 20, 2017
December 20, 2017
London, UK -- 20 December, 2017 -- Wealth & Asset Managers in Europe are closer to embracing new technologies than their sell-side counterparts because CEOs in the industry understand the importance of technology within the business, according to over 200 Information Technology (IT) executives working in the financial services sector.
Survey results released today by Excelian, Luxoft Financial Services – the financial services IT consultancy division of Luxoft, a global IT service provider - reveal that 87% of IT executives working for Wealth & Asset Management firms believe their CEOs understand the importance of technology within the business. In contrast, 75% of IT executives working in banking and capital markets are frustrated by a lack of understanding of technology in the boardroom.
The top priority for technologists working on the buy-side is moving the business onto the cloud – 81% agree this is a strategic priority, whilst 76% also believe improving automation is a high priority.
Whilst both IT departments on the sell-side and buy-side are concerned about a lack of investment in technology, the frustrations are more acute in banks – 86% of respondents working for banks complain about a lack of investment in IT, compared to 77% of those working on the buy-side. Some buy-side firms are therefore still looking to find a competitive edge, made more crucial given mounting regulatory pressures, the fee squeeze and the stubbornly low interest rates in Europe.
“There is clearly a growing chasm between how those on the sell-side and the buy-side view technology,” said Roman Trachtenberg, Group Managing Director and Global head of Excelian, Luxoft Financial Services. “Investment banks have been bogged down by regulatory compliance costs for the last ten years, whilst Wealth & Asset Managers have been able to experiment more freely with technology.
“Balancing technology projects that keep the lights on against those that encourage innovation and growth has been more of a strategic priority for buy-side executives. As a result, disrupters are emerging on the buy-side with firms using technologies like Alexa to service investors whilst robo-advice is undercutting traditional business models.”
These latest survey results are part of Excelian, Luxoft Financial Services’ ongoing campaign to understand the frustrations of IT executives in the financial sector.
About the Research
Excelian, Luxoft Financial Services commissioned independent research agency Censuswide to conduct a survey of 202 IT Decision Makers in the financial services sector, specifically in capital markets, wealth management and corporate banking in companies with over 500+ employees; 102 in the UK; 50 in Germany; 30 in Switzerland; 20 in Austria. The survey was conducted in August 2017. Excelian, Luxoft Financial Services also interviewed eight senior IT executives at tier one financial institutions under conditions of anonymity to understand their specific frustrations.
Luxoft (NYSE:LXFT) is a global IT service provider of innovative technology solutions that delivers measurable business outcomes to multinational companies. Its offerings encompass strategic consulting, custom software development services, and digital solution engineering. Luxoft enables companies to compete by leveraging its multi-industry expertise in the financial services, automotive, communications, and healthcare & life sciences sectors. Its managed delivery model is underpinned by a highly-educated workforce, allowing the Company to continuously innovate upwards on the technology stack to meet evolving digital challenges.
Luxoft has more than 13,100 employees across 41 cities in 20 countries within five continents, with its operating headquarters office in Zug, Switzerland. For more information, please visit the website www.luxoft.com
This news release of Luxoft Holding, Inc (“Luxoft”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements are subject to, without limitation, the risk factors discussed under the heading “Risk Factors” in Luxoft’s Annual Report on Form 20-F for the year ended March 31, 2017 and other documents filed with or furnished to the Securities and Exchange Commission by Luxoft. Except as required by law, Luxoft undertakes no obligation to publicly update any forward-looking statements for any reason after the date of this news release whether as a result of new information, future events or otherwise.
All trademarks are recognized and are the property of their respective companies.