Research from Lloyds Bank has found that UK financial institutions are turning in increasing numbers to technology to combat the rising cost-of-living.
According to Finextra, the study found that 75% of UK financial institutions are expecting costs of operations to rise in the next year due to the cost-of-living crisis.
In addition, 72% of respondents believe that investing in technology will lessen the effect of cost increases, and it is predicted that 71% of financial organisations will invest in core technology within the next year.
Lloyds found that UK financial companies predict that investing in technology will allow them to stay afloat during the current turbulence being seen in the economy. Other ways of protecting their business included absorbing costs and raising prices of their services at 46% and 38% respectively.
Up to 79% of financial institutions said they were prioritising investment in cloud technologies, while 69% were focusing investment in payments. Meanwhile, 66% were putting their investment into APIs, data science and AI learning.
Furthermore, 60% of UK financial service providers stated they expect the value of the global market to take a dip in the next year. Less than 25% of UK financial firms have faith in cryptocurrencies.
Lloyds head of prudential liquidity management Peter Left said, “We can expect a lot of crypto tokens to disappear in the coming months and years. But it’s the technology and not the tokens themselves that’s the real value add in the crypto space. The mechanism using Distributed Ledger Technology (DLT) that’s been built to facilitate cryptocurrencies is powerful.”
The British Post Office recently reported that the cost-of-living squeeze has seen a climb in the use of personal cash withdrawals, up 8% month-on-month.
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