NEW YORK, Jan. 18, 2022 /PRNewswire/ -- Financial
services firms who invested in next-gen technologies and continued
their digital transformation push in 2021 are already experiencing
the positive effects of these investments, according to a new
global survey of 750 financial service firms, released today by
global fintech leader Broadridge Financial Solutions (NYSE:
BR).
Broadridge's Next-Gen Technology Survey scored firms on
progress in three key areas of digital transformation: experiences,
workflows and analytics. It also evaluated progress in developing
the strategic and organizational components of transformation, as
well as use of next-gen technologies such as AI, blockchain and the
Cloud to categorize firms as Beginners, Implementers, Advancers or
Leaders in the Broadridge Digital Transformation Maturity
Framework.
Broadridge's Next-Gen Technology Adoption Survey found that
leaders at financial services firms that were further along in
their digital investments were 1.5x more likely to report increased
revenues as a result of their digital transformation than those in
the earlier stages.
"This year's survey confirms that leading firms are more driven
than ever to implement the key pillars of a digital-first future.
As a result, digital transformation leaders are seeing accelerated
growth," said Tim Gokey, Chief
Executive Officer of Broadridge. "Digital leaders are succeeding
with a clear vision and roadmap that prioritizes digitized
communications, experiences, and workflows leveraging strong data
and analytics."
Main Drivers for Digital Transformation: Customer Experiences
and Communications
In 2021, financial services organizations continued to invest in
digital channels to stay in touch with clients, with the majority
of respondents citing the need to enhance the customer experience
as a key driver for their digital transformations.
Digital communications became more vital during the pandemic,
with firms looking to offer a more seamless, personalized and
interactive experience across channels to keep up with changing
customer expectations.
As a result, three-quarters of firms are prioritizing digitized
customer experiences now. In terms of the top three priorities for
digital transformation in the next two years, customer interaction
was the highest priority (77%), with operations (69%) and sales and
marketing (68%) following closely behind.
Though around 75% of all firms surveyed are in the
mid-to-advanced stages of digitizing and transforming their client
experiences, approximately 25% still have work to do to keep up
with industry leaders.
Prioritizing AI, Blockchain and Cloud Implementation
In terms of next-gen technologies that underpin digital
transformation, artificial intelligence (AI) experienced the
biggest jump in implementation levels at financial services firms.
It increased from one-quarter (25%) of firms at mid-to-advanced
levels of implementation in Broadridge's 2020 survey, to nearly
two-thirds (61%) in this year's survey. The study also found that
firms plan on continuing to fast-track their AI journeys – more
than three-quarters of firms expect to be in mid-to-advanced stages
of implementation over the next two years.
Additionally, the study found a steady increase in interest in
the Cloud and blockchain among financial services firms. The survey
showed that while 78% of firms have already made considerable
progress in their use of the Cloud over the past year, the number
of firms reaching mid or advanced levels of implementation
increased to 80% in 2021 and is expected to jump to 91% over the
next two years.
When it comes to digital ledger technology, a similar trend
emerges. Over the past year, the percentage of firms at the
mid-to-advanced stages of implementation more than doubled from 15%
to 37%, and the use of blockchain will only widen, with more than
two-thirds (69%) of firms planning to reach the later stages of
implementation in two years.
Though the study showed an increase in implementation and
interest in AI, the Cloud and blockchain, challenges remain. The
top three obstacles firms face in implementing these emerging
technologies and accelerating digital transformation include: the
rapid pace of technological change, the lack of a roadmap for
innovation and the struggle to modernize IT infrastructure.
Leaders See Progress in Data
and Analytics
Firms categorized as Leaders in the maturity framework are
making good progress in their use of data and analytics. 95% are at
a mid-to-advanced level of implementation; however, only 11% of
beginners in the maturity framework were at mid-to-advanced levels
of implementation, suggesting a need to focus additional efforts on
this critical capability.
The study also revealed that two-thirds of firms have already
begun setting up a centralized data platform with access to data
across divisions, enabling them to serve customers more
holistically and make better strategic decisions.
The full Broadridge Next-Gen Technology Adoption survey can be
found here.
Methodology
This Broadridge survey was conducted by ThoughtLab Group to
understand how financial services companies are digitally
transforming and adopting AI, blockchain, and the Cloud
technologies. The study scores firms on people factors, strategic
mindset and adoption of next-gen technologies to categorize firms
as Beginners, Implementers, Advancers or Leaders in the Broadridge
Digital Transformation Maturity Framework. C-Suite executives and
their direct reports from 750 financial institutions globally were
surveyed, with fielding completed Nov
2021. The total assets or AUM of companies in the sample
ranged from $1 billion to over
$500 billion. For further details on
survey methodology, please contact a Broadridge media
representative.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with $5 billion in revenues, provides the critical
infrastructure that powers investing, corporate governance, and
communications to enable better financial lives. We deliver
technology-driven solutions that drive business transformation for
banks, broker-dealers, asset and wealth managers and public
companies. Broadridge's infrastructure serves as a global
communications hub enabling corporate governance by linking
thousands of public companies and mutual funds to tens of millions
of individual and institutional investors around the world. Our
technology and operations platforms underpin the daily trading of
more than $9 trillion of equities, fixed income and other
securities globally. A certified Great Place to Work®,
Broadridge is part of the S&P 500® Index,
employing over 13,000 associates in 21 countries. For more
information about us, please visit broadridge.com.
Media Contact:
Gabriella Miranda
Prosek Partners
gmiranda@prosek.com
+1 631-475-0734
Gregg Rosenberg
Broadridge
+1 212-918-6966
Gregg.Rosenberg@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.