Financial services technology provider TrustQuay has released its latest Future Focus Report, which examines the issues and opportunities in the corporate services, trust and alternative fund administration sector.
This year’s findings reveal that while firms believe that digitalisation, automation and innovation should make them more competitive and more valuable, the industry is struggling to reap the benefits.
Key findings
• Corporate services, trust and alternative fund administration firms only score themselves five out of 10 in terms of digitalisation.
• Half of the industry believes it does not invest as much in technology as other sectors of financial services
• 92% say that technological innovation in the industry needs to accelerate.
• Eight out of 10 say their firm could be better at delivering a digital experience for clients.
• 95% believe technology should be viewed as an investment in growth rather than just a cost, but only a third think their firm spends enough on technological innovation.
The survey covered 100 wealth managers, private banks, family offices, corporate services providers, trust and alternative fund administrators.
Keith Hale (pictured), Executive Chairman of TrustQuay, commented: "While there is clear evidence from other sectors that digital leaders deliver significantly higher revenue growth, margins and profitability than digital laggards, there appears to be a dichotomy between belief and behaviour within corporate services, trust and alternative fund administrators.
"Even though nearly all firms believe technology should be viewed as an investment in growth, rather than just a pure cost, only a third of firms feel they are investing the right amount in innovation.
"More work needs to be done to change attitudes and technology providers need to help firms by providing the tools and capabilities to make a clear assessment of the business case and return on investment for investing in technology.
"Automation and digitalisation inevitably happen sooner or later across all industries. So it seems inevitable that the future leaders in corporate services, trust and alternative fund administration will invest significantly more than is currently the case in digitalisation and automation in the short term, to the reap the medium term benefits as the market rapidly changes."