Digital Disruption in Finance is Here, Yet State Street Survey Finds Majority of Investment Firms Slow to Become Digital Lead...
February 23 2017 - 9:37AM
Business Wire
New Research Outlines How to Use Digital Innovation to Achieve
Long-Term Value
A global survey of 2,000 investors and 500 investment providers
sponsored by State Street Corporation (NYSE: STT) has identified
three aspects of data that will define stewardship for the digital
age: Integration, the ability to combine both structured and
unstructured data; Intelligence, the ability to draw new
insights with the help of emerging technologies that will enable
improved decision-making, performance measurement and client
centricity; and Integrity, the ability to better safeguard
data with the highest levels of security1.
The new report titled, “Finance Reimagined: Finding Long-Term
Value in a Digital Age,1” combines quantitative research with views
from industry experts, to explore how firms across the financial
services industry are using digital technologies to enhance their
businesses. Respondents to the survey included universal banks,
mutual funds, alternative investment firms and fintech (financial
technology) start-ups.
While eight in ten (81 percent) investment providers surveyed
say digital transformation is important for the future of their
organization, few firms are rallying to be at the forefront of
digitization. Yet nearly one-third of investors (28 percent) admit
to lagging behind other firms in the industry in applying digital
technologies to transform business strategies, processes, and
services.
“Digital transformation is driving a seismic shift in the
investment industry,” said Lou Maiuri, head of State Street’s
Global Markets and Global Exchange businesses. “While it’s critical
to understand how new technologies can deliver immediate
improvements in efficiency and insight, to become digital leaders,
those in the finance industry also need a long-term vision for
digital transformation that goes beyond simply adding the latest
technologies to an existing infrastructure.”
Like firms, individual investors surveyed believe digital
technology is the way forward, and admit they are more likely to
work with established financial partners over fintech
companies.
- 82% of investors say their provider
will need to stay at the forefront of technology in the next five
years
- 63% will want personalized advice in
the future, and 59% expect to use do-it-yourself capabilities such
as tools that enable them to self-manage their investments
- 40% say they would avoid fintech
businesses due to higher cybersecurity risks
The report identifies how investment firms can recognize and act
on opportunities to digitize aspects of their organizations by
highlighting several shared beliefs of digital leaders:
- 41% of digital leaders believe it’s
critical to adequately invest in new technologies like cloud and
artificial intelligence
- 31% note the importance of having the
right talent in place in combination with a strong customer-centric
focus
- 29% believe that prioritizing
cybersecurity is the foundation for building solid client
relationships based on trust and transparency
“We’re focused on how deep-rooted digital innovation can
generate new value for our clients by developing highly
personalized, data-driven products that appeal to a broader range
of investors,” continued Maiuri. “By increasing the ability of
institutions to understand and act on their investors’ needs, the
three I’s enable the financial leaders of the future to create
transparent, flexible services that increase trust and confidence
in the sector — redefining stewardship for the digital era.”
“New digital technologies will enable firms to provide a more
fluid, dynamic and interactive investment experience for clients,”
added Antoine Shagoury, chief information officer, State Street.
“Moreover, they will help the industry to deliver the type of
personalization investors are increasingly demanding, at scale.
Firms that neglect to understand and embrace emerging technologies
from Blockchain to artificial intelligence will also fail to remain
competitive in this new era of finance, while those who live and
breathe the digital revolution will be those who define the future
of the sector.”
To receive a copy of this report, click here.
About State Street CorporationState Street Corporation
(NYSE: STT) is one of the world's leading providers of financial
services to institutional investors, including investment
servicing, investment management and investment research and
trading. With $29 trillion in assets under custody and
administration and $2.47 trillion* in assets under management as of
December 31, 2016, State Street operates in more than 100
geographic markets worldwide, including the US, Canada, Europe, the
Middle East and Asia. For more information, visit State Street’s
website at www.statestreet.com
* Assets under management for State Street Global Advisors
(SSGA) were $2.47 trillion as of December 31, 2016. Assets under
management reflects approximately $30.62 billion (as of December
31, 2016) with respect to which State Street Global Markets, LLC
(SSGM) serves as marketing agent; SSGM and SSGA are affiliated.
CORP-2671
The whole or any part of this work may not be reproduced, copied
or transmitted or any of its contents disclosed to third parties
without State Street express written consent.
© 2017 State Street Corporation - All Rights Reserved
Expiration date:2/28/2018
1 Roubini ThoughtLab conducted a rigorous research program from
March to July 2016. This research was sponsored by State Street
surveying a total of 2,000 investors and 500 wealth service
providers across 10 leading markets, including the US, the UK,
Germany, Australia, China, Hong Kong, Mexico, Canada, Switzerland,
and Japan.
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version on businesswire.com: http://www.businesswire.com/news/home/20170223005990/en/
State Street CorporationJulie Kane,
+1-617-664-3001JEKane@statestreet.com@StateStreet
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