Some 60 per cent of c-suite executives say they are developing new ESG products and services in 2023, according to a new report by information services company, FIS.
The report, entitled 2023 Global Innovation, found that ESG is top of mind for financial services firms globally, with c-suite executives planning to invest significantly in ESG frameworks for the year ahead.
The report found that ESG is widely seen as a competitive must-have in the US, with 56 per cent of US financial services claiming ESG frameworks will offer opportunities to improve their competitiveness in the market.
Alongside ESG, respondents say they will also invest in Web3 — which incorporates decentralisation and cryptocurrency — to fuel growth despite economic uncertainty.
According to the study, most executives across the globe say they expect a major or moderate impact from embedded finance (84 per cent), decentralised finance (82 per cent) and cryptocurrencies (77 per cent).
These projections are largely mirrored by US executives, who expect innovation in these spaces to impact their business in 2023: embedded finance (81 per cent), decentralised finance (82 per cent) and cryptocurrencies (78 per cent).
According to new FIS research, the US is keeping pace with other countries’ investment in Web3 as organisations around the world look for the next growth opportunity.
Although 47 per cent of US financial services firms recognised decentralised finance to be a major growth opportunity for their organisation, 50 per cent of global financial services firms cite poor user experience as a barrier to adoption. Additionally, 47 per cent say they need to better understand the risks involved before they will participate.
The report includes 2,000 executives at firms across global markets and was conducted by Longitude Partners on FIS’ behalf between July and September 2022.
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