Three in five (59%) senior decision makers at UK financial services (FS) firms have said that their firm’s attitude to adopting new technologies is risk averse, Consulting by Davies has found.

New research by the firm revealed that although businesses are confident in their current use of tech, risk aversion is holding them back from implementing new technologies.

Davies' survey of 501 senior decision makers across FS companies found that 78% of respondents feel that their firm’s use of technology for internal processes and operations is good, while 86% expressed confidence in their customer facing technology.

Furthermore, investing in technology wasa priority for over two in five (42%) firms, the second most common answer behind improving operational efficiency.

Despite these answers, three in five (59%) respondents described their firm’s attitude to adoption and application of new technology as risk adverse.

Meanwhile, Davies’ research revealed that 38% said there was a lack of digital skills in their business, while technological disruption (26%) and cybersecurity (38%) were highlighted as key challenges for companies.

Director of the financial crime and regulatory compliance team at Consulting at Davies, Kurt Drozd, said: "While financial services firms have confidence in their current technology, there’s a real risk of complacency if they don't adopt a more dynamic approach to innovation.

"Strong internal and customer-facing systems are essential components of a successful FS firm, but risk aversion is holding many businesses back from capitalising on the new opportunities that technological advancement is creating.

"In today’s world of business where technology evolves so fast and the successful adoption of emerging technologies – such as artificial intelligence and machine learning – is often the difference between success and failure, firms that are struggling to embrace these advancements risk being left behind."

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