In the last four years, investment banks have been significantly underspending on innovation. According to data compiled by the Boston Consulting Group (BCG)1, change-the-bank (CTB) spend is almost flat at a rate of around one percent and only a small proportion of that spend is on true innovation, with as much as 80% focused on legacy system upgrades.
At the same time, demand for cutting-edge technologies and agile systems has never been greater, with financial organisations increasingly recognising the need for innovation to become an ingrained part of their corporate culture. The FinTech industry is also no longer in its nascency, but many firms still struggle to ensure their solutions are suitable for adoption at an institutional level.
In this article, Nicola Tavendale and Mike O’Hara of The Realization Group speak to Kim Johannessen of TreoTrade, Seismic Foundry’s Cathy Lyall, Richard Balarkas of Squarebook, Nomura’s Simon Hornibrook, James Maxfield of Ascendant Strategy and Lloyds Banking Group’s Sophie Bialaszewski and Kate Simmons, about what can be done differently by both financial institutions and FinTechs to put innovation back at the heart of the industry.