Differentiation vs. complexity: the technology challenge for FSI firms in 2024
We surveyed 260 global CIOs and senior IT leaders within large financial services and insurance organisations to gain insights into their digital transformations.
The financial services sector has never been more competitive.
Technology is at the heart of this cutthroat environment with organisations looking to differentiate through their digital services.
However, the combination of legacy technology and modern multicloud environments is proving difficult for IT and security teams to manage.
Complexity is a growing challenge
12
The number of different platforms and services spanning the average multicloud environment.
89%
of organizations say the complexity of their technology stack has increased in the past 12 months, and 54% say it will continue to increase.
Continued reliance on fragmented monitoring tools and manual analytics adds to the challenge
11
The average number of different observability or monitoring tools FSI organisations use to manage applications, infrastructure, and user experience.
81%
of FSI technology leaders say the number of tools, platforms, and applications they rely on augments multicloud complexity.
Kubernetes has become the platform of choice
Its scalability and efficiency are perfect for the cloud-native world, but it adds to the challenge of maintaining cloud visibility.
87%
of technology leaders say it’s more difficult to maintain visibility into a dynamic Kubernetes architecture compared with traditional technology stacks.
Cloud-native technology stacks create more data than teams can keep up with
ITOps and security teams struggle with the data firehose, instead of working to drive more automation and make smarter decisions.
88%
of FSI technology leaders say cloud-native technology stacks produce an explosion of data that is beyond humans’ ability to manage.
85%
say the costs of storing and analysing logs are soaring and outweigh the benefits they provide.
79%
of these organisations are currently using or planning to adopt a unified platform for observability and security data within the next 12 months.
Financial services organisations are increasingly turning to advanced AI, analytics, and automation
These capabilities can help overcome complexity. But most FSIs have seen limited value from their initial analytics and automation strategies.
75%
of organizations have already adopted AIOps to reduce their multicloud complexity, and a further 18% plan to adopt it in the next 12 months
94%
of technology leaders say probabilistic machine learning approaches have limited the value that AIOps tools deliver, due to the manual effort required.
82%
say the maturity of AI, analytics, and automation capabilities will play a more important role in how they choose vendors and partners.
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and insurance sector, as well as across other industries.
