Growing cost pressures has led to financial institutions cutting headcount in place of technology.
Technology spend never ends up being a small proportion of headcount spend. It always ends up being more expensive. Decent tech solutions are expensive and still need humans to operate them (for the time being).
Scrimping on technology can lead to larger operational and financial consequences, as we have seen with the IT failures by, and cyber attacks on, UK banks.
Having robust contracts in place is essential. Testing the contractual assurances and implementing governance and oversight mechanisms into the customer's operations is vital.
Technology is not therefore always the answer but it is a good start.
Done correctly by considering all the factors, it is changing financial services for the better.
This is why we believe in FinTech.
The United States could lose its position as the world’s dominant capital market unless regulators effectively respond to seismic shifts caused by advances in financial technology, a former White House economic adviser said Wednesday at a panel discussion organized by the U.S. Securities and Exchange Commission.