Saxo Bank: Banks Turn to Outsourcing to Hamper Digital Wealth Modernisation

Saxo Bank says banks are increasingly relying on external partners to modernise wealth management and brokerage services as legacy technology and growing competitive pressure slow digital transformation.

A new study from Saxo Bank surveyed 332 senior decision-makers across banking, brokerage and fintech firms in Europe, the Middle East and North Africa (MENA), and Asia-Pacific (APAC). It found that half (50%) favour a hybrid operating model combining internal expertise with a single outsourced provider over the long term.

The findings point to a shift in how financial institutions approach digital infrastructure. Rather than building every capability internally, banks are increasingly considering strategic partnerships to accelerate technology upgrades and expand their wealth and brokerage propositions.

Saxo Bank: Banks Turn to Outsourcing Hampers Digital Wealth Modernisation

However, most institutions remain some distance from digital maturity. Only 28% of respondents described their wealth and brokerage capabilities as advanced. Another 43% considered themselves fairly advanced, with some ability to personalise client experiences and a partially digitised value chain.

Legacy technology remains a major obstacle. Respondents estimated that their core wealth and brokerage technology stack is 6.7 years old on average. Among institutions managing these capabilities entirely in-house, the figure rises to 7.5 years.

The study also highlighted a gap between confidence and execution. While 75% of respondents believe banks are ready to deliver digital wealth and brokerage propositions, 79% said banks are launching new offerings without having all the capabilities to support them.

Artificial intelligence is adding further competitive pressure. AI-driven robo-advisories and automated investment services were identified as the leading competitive threat, cited by 48% of respondents. Big Tech companies entering financial services followed at 43%, while neo-brokers offering low- or zero-cost trading were cited by 36%.

Henrik Alsøe, Global Head of Institutional at Saxo Bank, said the combination of growing global wealth and rapid AI advances is increasing pressure on financial institutions to modernise faster.

The findings suggest that strategic technology partnerships could become increasingly important as banks seek to replace ageing infrastructure, scale digital capabilities and respond more quickly to changing client expectations.

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Saxo Bank stands out as a premier multi-asset broker, offering exceptional research capabilities and an exceptional trading platform, along with an impressive array of over 70,000 tradable instruments, which include spot forex, FX options, NDFs, CFDs, stocks, stock options, exchange-traded funds, ETNs, futures, and 33,000 bonds. For engaged traders, Saxo Bank offers a comprehensive and immersive trading journey, boasting an extensive toolkit, research resources, and premium features.

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