Published by Jessica Weisman-Pitts
Posted on October 11, 2022
5 min readLast updated: February 3, 2026
Financial services organisations looking to break ahead in a hotly contested digital space
Financial services organisations looking to break ahead in a hotly contested digital space are being thwarted by myriad leadership issues – according to a groundbreaking new study.
The research conducted by Vanson Bourne, on behalf of digital product consultancy Elsewhen, looked at digital progression through the lens of 200 UK decision-makers across sectors including financial services.
Over three-quarters of respondents in the financial services sector work at companies with an annual global revenue of between £1bn and £50bn, and with an annual IT budget of between £1m and £25m.
Despite these considerable resources, those questioned by the survey – the majority of whom work in either IT or customer services /CX, and product development areas of financial services – show little faith in their organisations’ digital capacities:
While leadership challenges were reported by decision-makers in all sectors explored by the research – which focuses on sectors including FMCG and retail as well as financial services – they were most acute within the financial services industry.
Leadership problems relating to product experience (38%), technology experience (34%) and lack of commitment to required changes (44%) were all higher in the financial services sector than for nearly all other sectors surveyed, making it a topline issue in an arena dominated by digital disruptors. 72% also point to big gaps between digital strategy and what can actually be achieved in their organisations – creating a chasm that may have grave consequences.
Around half of financial services sector respondents say that the impact of failed digital projects include overall strategic objectives not being met (50%), budgets being impacted (47%), and compliance requirements not being fulfilled (47%); all of which could put a significant dent in their ability to compete in a fiercely contested sphere.
Financial services is not alone in its struggles. The study reveals a series of issues around inexperienced leadership and lukewarm commitment at management level, that extend across all sectors explored in the research.
The problem is particularly acute within IT teams for all industries spotlighted by the study. A striking 89% of IT respondents questioned in the survey work in companies with an annual IT budget of £1m+. And yet a third cite a lack of leadership experience in product (32%) and nearly a quarter (23%) cite a lack of leadership in technology as their top strategic concerns.
“This new data confirms what we’ve seen anecdotally in our client work, which is financial services companies’ commitment to continuously using digital to improve customer and employee experience,” says Elsewhen co-founder and chief product & strategy officer Leon Gauhman.
“Yet the findings reveal that financial services more than any other sector surveyed is experiencing a crisis of leadership,” he adds. “Lack of knowledge, experience, vision and managerial commitment is hampering progress, preventing companies from reaching their full potential. It’s clear that a more radical approach is required to translate digital ambition and strategy into innovative products and services.”
Consultancy may have a powerful role to play here, with an impressive 100% of financial services respondents describing their most recent third-party project as either meeting (34%) or exceeding (66%) expectations. Longer-term relationships work better, however. Overall the survey found that companies that rely on third-party digital services more than half the time, are significantly more likely to say that the most recent digital project exceeded expectations (65%) compared to those who use the same services in half or fewer digital projects (46%).
“It’s good to see financial services acknowledge the importance of consultant involvement in complex digital projects,” says Gauhman. “Given that over two thirds of respondents believe consultants have exceeded client expectations, there is scope to raise the ambition level to match the challenges posed by new players such as fintechs and big tech.”
The survey was conducted by research firm Vanson Bourne on behalf of Elsewhen in Q3 2022.
For more info please contact Poppy Brech poppy@contentopr.co.uk.
Study background
Elsewhen’s survey canvassed 200 decision-makers at major UK companies across multiple sectors (including FMCG, retail, financial services and healthcare sectors) in Q3 2022. Over 60% of respondents work at businesses with 5000 or more employees, and 39% work at companies in the 1000-4999 employees bracket
The influence of these companies is underlined by the size of their IT budgets. 89% of those surveyed work at companies where the annual IT budget exceeds £1m. More than a third (37%) are working with IT budgets that exceed £10 million per annum. In terms of overall global revenues, 86% of decision-makers interviewed in the study work at corporations generating more than £1bn per annum.
Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers.
A leadership gap occurs when there is a lack of effective leaders in an organization, which can hinder decision-making and strategic initiatives.
A digital strategy is a plan that outlines how an organization will use digital technologies to achieve its business goals and enhance customer experiences.
AI, or artificial intelligence, in financial services refers to the use of machine learning and data analytics to improve decision-making, enhance customer service, and streamline operations.
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