Almost two-thirds (59%) of the surveyed institutions described their approach to new technology as "risk averse".

This is despite a general confidence in the use of technology - 78% feel their use of technology for internal processes is "good" while 86% have confidence in their customer-facing technology.

But the reticence to adopt new technology is holding financial institutions back when it comes to benefitting from new developments and opportunities to innovate, according to Consulting at Davies, the firm that commissioned the research.

"In today’s world of business where technology evolves so fast and the successful adoption of emerging technologies—such as Artificial Intelligence and Machine Learning—is often the difference between success and failure, firms that are struggling to embrace these advancements risk being left behind," said Kurt Drozd, director of the financial crime and regulatory compliance team for Consulting at Davies.

Another finding uncovered by the research is that more than a third (38%) of firms say there is a lack of digital skills at their institution.

The survey canvassed 501 decision makers in UK financial instiutions. th.”