Banking and financial services firms are planning to increase their IT spend significantly over the coming 12 months to improve both front and back-end technology, new research from Yobota has revealed.

According to the study, 65% of firms plan to invest heavily in technology over the coming year, with 67% also planning to diversify the kinds of technologies they use, Yobota stated.

The London-based technology firm commissioned an independent survey among 250 senior decision-makers within banks and financial services companies.

The survey’s findings suggested that improving the quality of their core technology systems is a priority for 74% of firms. Similar numbers of firms (73%) plan to invest in better data analytics to enable more informed decisions, while 67% indicated they will invest in application programming interfaces (APIs), and 65% in payment technologies.

Furthermore, 74% of banking and finance firms intend to improve customers’ digital experience by upgrading their website or app, while 63% plan to automate customer interactions through chatbots and robo-advisers.

Yobota head of sales and marketing, Ion Fratiloiu, said that banks and financial services firms must begin to “act like technology companies” to meet the expectations of the modern customer.

“Over the coming years, the ability to move quickly and deliver instant, personalised and flexible services are what will stand industry leaders apart from digital laggards,” Fratiloiu said.

“Positively, our research shows that the sector is taking note and businesses are investing heavily in new technologies. Importantly, digital innovation is taking place across both customer-facing and back-office platforms – it is often the latter that requires more attention.

“Investment in APIs, data analytics and the reinvention of core technologies suggests that banks are keen to replace outdated systems with best-in-class technology in preparation for a digital-first future. Meanwhile, the majority remain focused on improving customer interactions and solidifying retention – a cornerstone of long-term success.”

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