As the pressure for financial service companies to increase their digital capabilities continues to rise, leaders are pulling further ahead of the pack on multiple fronts, according to new research from Broadridge.
The research, which surveyed 500 C-suite and senior executives globally, from firms representing anywhere from $1 billion to over $250 billion in AUM, highlights the strategic investments firms are making in technology and talent to enhance their enterprise value.
In Broadridge’s 2024 Digital Transformation & Next-Gen Technology Study, 75 percent of executives expressed confidence in their technology transformation strategies, with more than two-thirds saying they’ve made meaningful strides in modernizing their core IT infrastructure.
The survey – which sorted firms into leaders and non-leaders based on their progress across ten key aspects of digital transformation – showed more than 80 percent of executives are channeling investments into cybersecurity and advanced IT cloud platforms. Moreover, a substantial majority plan to maintain or increase their spend on emerging technologies such as AI, quantum computing, and blockchain in the next two years.
“We are seeing significant momentum in the adoption of next-generation technology like GenAI from financial services firms looking to solve their most pressing business challenges, while they’re also gaining measurable value from more established technologies including AI, blockchain, cloud and core infrastructure platforms,” said Chris Perry, president of Broadridge.
About 40 percent of respondents believe a customer-centric approach is crucial for accelerating digital transformation. Seventy percent of leaders, compared to 52 percent overall, are prioritizing AI investments in customer interactions to foster deeper engagement.
While 44 percent of leaders are making moderate-to-large investments in generative AI – more than twice the effort non-leaders are exerting – Broadridge says laggards may still gain ground given the lower cost of entry to deploy GenAI.
Despite the technological advancements, there's still a gap in enterprise-wide digital skills development. Only 28 percent of executives reported advanced stages of implementing digital skills and talent strategies, although this represents a year-on-year increase.
The study also found a stark contrast between leaders and non-leaders in developing an innovation culture and implementing digital talent strategies, with 71 percent of leaders having advanced digital skills strategies compared to only 12 percent of non-leaders.
As firms enhance digital customer experiences, they’re also ramping up their cybersecurity, with plans for increased investment by 28 percent on average over the next two years.
Cybersecurity challenges continue to be the top barrier to firms’ digital transformation, according to executives. In line with that, they’ve ranked cybersecurity as the top capability they expect from their tech vendors, ahead of delivering projects on time and on budget and enhancing their solutions with next-gen tech.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
