All financial businesses need to "improve the customer journey" if they are to keep up with incoming competition, according to Sir David Clementi, chairman of Virgin Money and chairman of World First, and former deputy Governor of the Bank of England.

Speaking at a Swift forum, Clementi emphasised the importance of not only embracing technology, but using it to serve customers better, in order stay competitive.

“My main message, beyond that of ensuring that the business is properly compliant with the regulatory requirements of the territories within which it is operating, is that good businesses will harness technology alongside a passionate desire to simplify the experience for customers,” he said. 

“All businesses need to do this. There is a threat for established businesses with legacy systems and long-serving staff that they will be overtaken by companies with new technology and young staff.”

A Swift poll conduced at the forum supported this claim, finding that the majority (59%) of delegates thought that the financial technology, or fintech, sector will have a lasting impact on the financial services ecosystem.

Most also said that they didn't agree that fintech represented another dot.com bubble – indicating a strong belief in the lasting impact of technology innovation on the financial services ecosystem.

However, financial services providers seem to still be grappling with existing issues such as regulatory change. 

Despite acknowledgement that the financial services landscape is in the midst of a technology revolution, attendees at the forum still clearly consider regulation as the highest priority on their companies’ strategic agendas; 45% of respondents to the on-site survey said it had greater importance than new entrants (20%) and reducing costs (15%).

“Many of the discussions during the day focused on the impact of fintech, both the challenges and opportunities this sector creates for financial services firms, but what is clear is that regulation is still dominating the landscape," said Arun Aggarwal, managing director UK, Ireland and Nordics at Swift. 

"In light of this, the need for collaboration on financial crime compliance came across clearly, along with the need for an even stronger focus on achieving operational excellence.”