2024 Tech Trends in Finance: Insights to Attract and Retain Software Buyers – Gartner
or call +1 703 584 1800
or call +1 703 584 1800
December 15, 2023
Contributor: Max Lillard
The finance industry has witnessed tremendous technological advancements in recent years, including blockchain, digital banking, mobile payments, pay later market, AI-driven data analysis and personalization, cybersecurity, and fraud prevention. These innovations are set to be game-changers as they help fintech businesses drive efficiencies and bolster security.
Gartner Digital Markets conducted the 2024 Tech Trends Survey among more than 3,400 respondents in nine countries to understand the organizational challenges, technology adoption timelines and budget, vendor research behaviors, ROI expectations, and satisfaction levels for software buyers, and how they relate to experiencing regret after a purchase.
This article takes a deep dive into the finance vertical by analyzing data from 542 software purchasing decision-makers who work in banking, investments, asset or wealth management, or similar roles in the industry. Here are the top buying behavior insights from finance professionals and why they matter for software providers.
From account details, transaction reports, audits, payments, credit card numbers or tax filings, sensitive data is central to the finance industry and poses unique challenges when planning tech investments. For this reason, 41% of businesses are concerned about security when buying software, and the same percentage find it difficult to identify the right technology for their operations.
Further complicating the selection process, the software they choose must integrate with their internal systems and be interoperable with payment processors, banks, and other platforms that form the backbone of the economy. This is likely why more than a third say finding software solutions that are compatible with their existing systems is a top challenge.
→ Why this matters to software providers:
If you are looking to engage finance decision-makers, start by illustrating how your software will help them overcome security concerns and integration issues. Use customer success stories to show how you’ve helped similar clients in the industry and highlight what integrations are available to showcase compatibility with prospect’s existing systems.
In the face of security threats and changing shopping behavior, seven out of 10 finance buyers say that they plan to spend more on software in 2024 than they did in 2023.
Cybersecurity and data protection, customer relationship management, and IT management software will be among some of their top investment priorities.
Respondents will also be investing more in accounting and finance (34%), marketing (26%), and business intelligence software (25%).
→ Why this matters to software providers:
Tech providers should develop effective lead generation strategies to capture increased demand for software in 2024. In addition to accounting, budgeting, investment management or other finance-related product features, give special attention to security when crafting your messaging to attract the attention of fintech buyers.
Nearly all finance buyers (98%) start the buying process by putting together a list of potential software vendors. Most respondents say that these lists include three to five options, and to create these lists they look at customer reviews, software rankings, or vendor websites.
Sixty-seven percent of respondents say that it took them between 3 to 6 months to evaluate and determine which software would be a good fit for their business.
→ Why this matters to software providers:
Be where your buyers are searching for software to increase your chance of making it to buyers’ shortlists. Create a solid product profile on software comparison sites like Capterra, GetApp and Software Advice to improve your brand awareness and collect customer reviews that validate your value proposition and positively influence software purchase decisions.
Seventy percent of finance buyers say they regret at least one of their software purchases within the past 18 months—10 points higher than average. Over half of them (54%) feel that these decisions have had a significant impact on their businesses in the long-term.
Some of the glaring signs that buyers chose the wrong technology are cost related including total investment being more expensive than what they were led to believe (37%) and buyers’ inability to demonstrate return on investment (24%).
For 34% of businesses, the software had more advanced or more features than necessary and 30% found it difficult to learn how to use it or onboard their teams.
Difficult and slow implementation process (33%) and incompatibility with existing systems (30%) are other key drivers of regret.
→ Why this matters to software providers:
Tech providers should practice stakeholder mapping to identify roles in the software buying committee and clarify goals and expectations. Develop quality content to address product-related factors potentially leading to regret, such as pricing guides, training and onboarding materials, and implementation support.
Finance professionals deal with software buying regret in a handful of ways, with the top response being to replace the software they purchased with another from a different vendor. Notably, a little over a quarter of buyers stopped communicating with their vendor entirely after feeling the software didn’t meet their expectations, and a similar percentage canceled their contract outright after experiencing regret.
A third (31%) of finance buyers say they renegotiated the cost of their software contract with their vendor or coordinated with them to remedy issues.
→ Why this matters to software providers:
To prevent finance customer churn, software providers should periodically check customer satisfaction levels to address concerns in a timely manner. Working with a dedicated staff member, having the vendor respond immediately to requests, and enhanced training and implementation assistance is especially helpful to prevent churn.
Attracting and retaining the right customer is the surest way to scale efficient growth. But engaging software buyers in your target industry requires a deep understanding of what they need and how they behave.
Our data highlights key buying behavior trends tech providers should watch out for to effectively navigate change in the finance industry. From top business challenges and technology investments, to product expectations and regret drivers—these insights are crucial to level up your acquisition strategy and prevent churn.
Methodology
Gartner Digital Markets’ 2024 Tech Trends Survey was designed to understand the timeline, organizational challenges, adoption & budget, vendor research behaviors, ROI expectations, satisfaction levels for software buyers, and how they relate to buyer’s remorse.
The survey was conducted online in July 2023 among 3,484 respondents from the U.S., U.K., Canada, Australia, France, India, Germany, Brazil, and Japan, with businesses across multiple industries and company sizes (5 or more employees). Respondents were screened to ensure their involvement in software purchasing decisions.
This report includes responses from the financial services industry only—a subset of 542 professionals.
Max Lillard
Max Lillard is a senior analyst at Gartner Digital Markets covering accounting and finance. Past research of his has explored the rise of digital commerce alongside advanced customer support solutions for contact centers. When he’s not snuggled up with his two cats enjoying a good book, he can be found painting, skating, or seeing live music around Austin, Texas.
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I have read, understood and accepted Gartner Separate Consent Letter , whereby I agree (1) to provide Gartner with my personal information, and understand that information will be transferred outside of mainland China and processed by Gartner group companies and other legitimate processing parties and (2) to be contacted by Gartner group companies via internet, mobile/telephone and email, for the purposes of sales, marketing and research.
We value your privacy. By submitting this form, you agree we may use your information in accordance with the terms of the Gartner Digital Markets Privacy Policy.
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Gather third-party verified user reviews
Earn badges, reports and other assets to build credibility with buyers
Target buyers by category, geo, and site
Let us qualify your target software buyers
See who's researching your software, flag potential churn and activate target accounts
©2024 Gartner, Inc. and/or its affiliates. All rights reserved.
©2024 Gartner, Inc. and/or its affiliates. All rights reserved.
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
or call +1 703 584 1800
December 15, 2023
Contributor: Max Lillard
The finance industry has witnessed tremendous technological advancements in recent years, including blockchain, digital banking, mobile payments, pay later market, AI-driven data analysis and personalization, cybersecurity, and fraud prevention. These innovations are set to be game-changers as they help fintech businesses drive efficiencies and bolster security.
Gartner Digital Markets conducted the 2024 Tech Trends Survey among more than 3,400 respondents in nine countries to understand the organizational challenges, technology adoption timelines and budget, vendor research behaviors, ROI expectations, and satisfaction levels for software buyers, and how they relate to experiencing regret after a purchase.
This article takes a deep dive into the finance vertical by analyzing data from 542 software purchasing decision-makers who work in banking, investments, asset or wealth management, or similar roles in the industry. Here are the top buying behavior insights from finance professionals and why they matter for software providers.
From account details, transaction reports, audits, payments, credit card numbers or tax filings, sensitive data is central to the finance industry and poses unique challenges when planning tech investments. For this reason, 41% of businesses are concerned about security when buying software, and the same percentage find it difficult to identify the right technology for their operations.
Further complicating the selection process, the software they choose must integrate with their internal systems and be interoperable with payment processors, banks, and other platforms that form the backbone of the economy. This is likely why more than a third say finding software solutions that are compatible with their existing systems is a top challenge.
→ Why this matters to software providers:
If you are looking to engage finance decision-makers, start by illustrating how your software will help them overcome security concerns and integration issues. Use customer success stories to show how you’ve helped similar clients in the industry and highlight what integrations are available to showcase compatibility with prospect’s existing systems.
In the face of security threats and changing shopping behavior, seven out of 10 finance buyers say that they plan to spend more on software in 2024 than they did in 2023.
Cybersecurity and data protection, customer relationship management, and IT management software will be among some of their top investment priorities.
Respondents will also be investing more in accounting and finance (34%), marketing (26%), and business intelligence software (25%).
→ Why this matters to software providers:
Tech providers should develop effective lead generation strategies to capture increased demand for software in 2024. In addition to accounting, budgeting, investment management or other finance-related product features, give special attention to security when crafting your messaging to attract the attention of fintech buyers.
Nearly all finance buyers (98%) start the buying process by putting together a list of potential software vendors. Most respondents say that these lists include three to five options, and to create these lists they look at customer reviews, software rankings, or vendor websites.
Sixty-seven percent of respondents say that it took them between 3 to 6 months to evaluate and determine which software would be a good fit for their business.
→ Why this matters to software providers:
Be where your buyers are searching for software to increase your chance of making it to buyers’ shortlists. Create a solid product profile on software comparison sites like Capterra, GetApp and Software Advice to improve your brand awareness and collect customer reviews that validate your value proposition and positively influence software purchase decisions.
Seventy percent of finance buyers say they regret at least one of their software purchases within the past 18 months—10 points higher than average. Over half of them (54%) feel that these decisions have had a significant impact on their businesses in the long-term.
Some of the glaring signs that buyers chose the wrong technology are cost related including total investment being more expensive than what they were led to believe (37%) and buyers’ inability to demonstrate return on investment (24%).
For 34% of businesses, the software had more advanced or more features than necessary and 30% found it difficult to learn how to use it or onboard their teams.
Difficult and slow implementation process (33%) and incompatibility with existing systems (30%) are other key drivers of regret.
→ Why this matters to software providers:
Tech providers should practice stakeholder mapping to identify roles in the software buying committee and clarify goals and expectations. Develop quality content to address product-related factors potentially leading to regret, such as pricing guides, training and onboarding materials, and implementation support.
Finance professionals deal with software buying regret in a handful of ways, with the top response being to replace the software they purchased with another from a different vendor. Notably, a little over a quarter of buyers stopped communicating with their vendor entirely after feeling the software didn’t meet their expectations, and a similar percentage canceled their contract outright after experiencing regret.
A third (31%) of finance buyers say they renegotiated the cost of their software contract with their vendor or coordinated with them to remedy issues.
→ Why this matters to software providers:
To prevent finance customer churn, software providers should periodically check customer satisfaction levels to address concerns in a timely manner. Working with a dedicated staff member, having the vendor respond immediately to requests, and enhanced training and implementation assistance is especially helpful to prevent churn.
Attracting and retaining the right customer is the surest way to scale efficient growth. But engaging software buyers in your target industry requires a deep understanding of what they need and how they behave.
Our data highlights key buying behavior trends tech providers should watch out for to effectively navigate change in the finance industry. From top business challenges and technology investments, to product expectations and regret drivers—these insights are crucial to level up your acquisition strategy and prevent churn.
Methodology
Gartner Digital Markets’ 2024 Tech Trends Survey was designed to understand the timeline, organizational challenges, adoption & budget, vendor research behaviors, ROI expectations, satisfaction levels for software buyers, and how they relate to buyer’s remorse.
The survey was conducted online in July 2023 among 3,484 respondents from the U.S., U.K., Canada, Australia, France, India, Germany, Brazil, and Japan, with businesses across multiple industries and company sizes (5 or more employees). Respondents were screened to ensure their involvement in software purchasing decisions.
This report includes responses from the financial services industry only—a subset of 542 professionals.
Max Lillard
Max Lillard is a senior analyst at Gartner Digital Markets covering accounting and finance. Past research of his has explored the rise of digital commerce alongside advanced customer support solutions for contact centers. When he’s not snuggled up with his two cats enjoying a good book, he can be found painting, skating, or seeing live music around Austin, Texas.
Please provide the consent below
I have read, understood and accepted Gartner Separate Consent Letter , whereby I agree (1) to provide Gartner with my personal information, and understand that information will be transferred outside of mainland China and processed by Gartner group companies and other legitimate processing parties and (2) to be contacted by Gartner group companies via internet, mobile/telephone and email, for the purposes of sales, marketing and research.
We value your privacy. By submitting this form, you agree we may use your information in accordance with the terms of the Gartner Digital Markets Privacy Policy.
Download eBook
Read Now
Read Now
Read Now
Connect to millions of in-market software buyers around the globe with our all-encompassing suite of marketing services.
Introduce yourself to engaged buyers
Gather third-party verified user reviews
Earn badges, reports and other assets to build credibility with buyers
Target buyers by category, geo, and site
Let us qualify your target software buyers
See who's researching your software, flag potential churn and activate target accounts
©2024 Gartner, Inc. and/or its affiliates. All rights reserved.
©2024 Gartner, Inc. and/or its affiliates. All rights reserved.
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
