Many wealth management firms are struggling to keep up-to-date with technological developments, yet few see the need to invest in people skilled in technology.
A survey of 500 executives in asset management, capital markets and private wealth showed 38 percent found keeping up-to-ate with technological change to be “a challenge”. The study was conducted by Intertrust, an administrative services firm.
Forty-five percent said they had a skill shortage in regtech and compliance, 35 percent in artificial intelligence, and 30 percent in cyber security.
Of the respondents, 16 percent said their firm is currently recruiting for a CTO-level role and upskilling existing staff to capitalise on emerging technologies.
A further half 49 percent said their firm does not currently recognise the need to recruit technology leaders or invest in new training, while 13 percent said their organisation found it hard to recruit tech talent.
Only 18 percent believe that by 2023 most firms in the sector will have hired chief technology officers with a mandate to drive strategic change, though another 35 perccent said the minority of firms would do so.
Ian Rumens, head of private wealth at Interturst, said he thought there was “little doubt” that demand for chief technology officers would grow.
“With many firms struggling to keep up with the latest developments in emerging technologies let alone seek a competitive advantage, the question will increasingly become when, rather than whether, to make new senior hires to devise the right strategy and implementation programme,” he said.
Mr Rumens said firms that waited risked losing the best talent or falling behind peers.
“Given the competition for technology leaders from other sectors outside financial services as well as their own, the necessary skills, particularly in high-demand areas such as AI, regtech and compliance are not always in ready supply,” he said.
Intertrust describes itself as an administrative services company working with “clients operating and investing in the international business environment”.