Blockchain Technology Highlighted In FIS Readiness Report
FIS’ new research study, the FIS Readiness Report: The Hunt for Growth, compiles data derived from 1,042 senior-level executives across institutional and wholesale financial services providers. Working in conjunction with the London-based research firm Longitude, FIS’ report also includes qualitative data from more than 20 in-depth interviews with top industry professionals.
According to the report, only 25 percent of the executives surveyed believe their institutions are technically and operationally ready to meet their growth ambitions. FIS arrived at this number by scoring six key growth enablers against the data they obtained to create the “FIS Readiness Index,” which shows how firms closer to operational excellence across their supply chains are growing faster than their competitors. The key enablers of growth as defined by FIS are: automation, data management, emerging technology, digital innovation, customer experience, and talent. Martin Boyd, executive director and head of I&W strategy at FIS, announced, “What is clear from this research is that those firms that can marry enabling technologies – such as machine learning, artificial intelligence, blockchain and mobile – with new business models are reaping dividends in terms of competitive advantage.”
Of the firms that scored highest in FIS’ ranking index, 41 percent are forging new revenue streams or enhancing older ones by testing or implementing blockchain technology. Of this leadership pool, 47 percent of firms are using blockchain technology for collateral management, 42 percent use blockchains for regulatory reporting, and 36 percent have implemented blockchain technology for clearing and settlements. Boyd continued, “Those firms who are investing for the future by taking a lead in automation, data and emerging technology are outperforming their peers in the revenue growth, pointing to a ‘tech readiness dividend’ for forward looking buy-side and sell-side firms.”
The study concludes with a final thought about emerging technologies. Per the report: “Senior leaders must take a longer-term outlook on embracing enabling technologies such as AI, blockchain and mobile to create a compelling new value proposition for clients.” As financial institutions around the world continue to measure their individual growth projections, they will undoubtedly have to reconcile their operational models to comply with advantageous developments in financial technologies. This has proven easier to understand that implement. Boyd surmises:
“The results are compelling because, despite all of the headlines around fintech disruption and the need to automate, many financial institutions acknowledge that they are still not where they ought to be when it comes to embracing technology and operations.”
FIS, also known as Fidelity National Information Services, was founded in 1968 and is a member of Standard & Poor’s 500 index. FIS services more than 20,000 clients from over 130 countries, empowering financial service providers with the technology to make billions of annual transactions worth over $9 trillion. The Jacksonville, Florida-based firm employs more than 55,000 professionals worldwide and is routinely included in the IDC Financial Insights Fintech Top 100. FIS has been ranked number 1 several times.