Increasing efficiencies while reducing costs is the top business challenge for wealth, trust, and corporate services firms heading into 2025, with 88% of firms citing digitalisation as the primary path to achieve this goal, according to research.
The report by Quantios, a global SaaS provider to the wealth, trust and corporate services industry, has revealed that despite recognising the importance of digital transformation, many firms have been slow to act, with 70% admitting they still rely on multiple legacy systems and manual processes. Only 42% of firms said they plan to explore new technology options within the next five years—a timeline that could impact their competitiveness.
Many organisations face challenges in advancing their technology strategies due to a focus on maintaining existing systems rather than pursuing strategic upgrades like AI and cloud solutions, according to the researchers. About 36% of firms surveyed prioritise other IT projects over cloud adoption, leading to delays in implementing comprehensive digital solutions. Additionally, 44% of firms reported internal resistance to change, while budget constraints also pose significant barriers, with 36% citing inadequate budget allocation and 47% allocating less than 5% of annual IT spending to innovation.
“Unnecessary to reinvent the wheel”
Guy Harrison, CEO at Quantios, emphasised the growing need for digital transformation in the sector: “There is widespread recognition within the wealth, trust and corporate services sector that digital transformation is no longer optional—especially as younger, tech-savvy clients enter the market and demand more digital services. But, our research has also revealed significant barriers to overcome. As such, businesses must prioritise the areas where digital innovation will have the most significant impact, such as cloud and SaaS.”
Survey respondents said they believe that increased investment in digitalisation could yield additional benefits, such as generating new revenue streams (72%) and enhancing talent attraction and retention (73%). 60% of firms consider automation tools to improve efficiency, and 39% aim to upgrade to cloud-based IT infrastructure to optimise operations. The report also indicated strong support for software as a service, with 77% viewing it as an ideal solution for firms with limited IT resources.
Quantios conducted this survey globally between August and September 2024, gathering insights from 91 wealth, trust, and corporate service providers, as well as private banks, family offices, and wealth managers.
