Some 52 per cent of senior decision-makers in financial services organisations in the US and Europe update or replace in-house solutions because they become technologically outdated, according to a new report by Asset Control.
Some 49 per cent of the sample said they were driven to schedule changes by “the increase in digitalisation within the business” and 48 per cent by the need to keep pace with the competition.
Martijn Groot, VP Marketing and Strategy, Asset Control, said: “The gradual accumulation of additional costs is one of the biggest problems with the in-house approach to technology development in financial services. Internal solutions are often approached as a project, i.e. a one-off cost and not regarded, and consequently budgeted, as an ongoing concern. This is unrealistic in a fast-changing financial services landscape.”
For many financial services organisations, the costs of internal solutions do ramp up. Nearly, three-quarters of the overall sample (73 per cent) reported that they had ‘experienced additional costs after implementing an internal solution’. The most common additional cost was ‘hiring new developers because of previous developers leaving the business’. This was referenced by 60 per cent of respondents in total.
Asset Control, Financial services, Technology, IT, Digitalisation