In the news release, Gap Widens Between Leaders and Non-Leaders
as Digital Transformation in Financial Services Reaches New Level
of Maturity, issued 14-Mar-2024 by
Broadridge Financial Solutions, Inc. over PR Newswire, we are
advised by the company that the two links to the "2024 Digital
Transformation and Next-Gen Tech Study" have been updated. The
complete, corrected release follows:
Gap Widens Between Leaders and Non-Leaders as Digital
Transformation in Financial Services Reaches New Level of Maturity
Firms pacing investments in core technologies
and cyber while promise of GenAI and the war for talent
becomes the next battleground
NEW
YORK, March 14, 2024 /PRNewswire/ -- As the
digital revolution accelerates, financial institutions are racing
to create enterprise value by investing heavily through the
economic cycle, according to a new study by Broadridge
Financial Solutions, Inc. (NYSE: BR). The study found that 75% of
executives are confident in their tech transformation roadmap, but
a digital maturity gap is growing between leaders and non-leaders.
While more than two-thirds say they have made meaningful progress
in modernizing their core IT platforms, organizations must make
progress against multiple tech and talent frontiers as they grapple
with new technologies like GenAI, rising cybersecurity challenges,
and accelerating needs for seamless digital customer
experiences.
The 2024 Digital Transformation and Next-Gen Tech
Study gauges the perspectives of 500 global C-suite and senior
executives across the buy side and sell side, illuminating the
forces driving the industry's technology modernization. The study
categorized firms as digital "leaders" versus "non-leaders," based
on their advancement levels across ten essential aspects of digital
transformation, including modernized core IT, the use of automation
tools, innovation culture, data management, and digital customer
experiences, among others.
When it comes to areas of focus, more than 80% of all executives
indicate that they are making the biggest day-to-day investments in
cybersecurity technology and building an advanced IT cloud
platform. Meanwhile the majority also expect to maintain or
increase their investment in next-gen technologies like AI, quantum
computing, crypto/digital assets, and blockchain over
the next two years.
"It's no surprise that 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. "Focusing on the human
aspect of digital transformation – attracting and retaining digital
talent and fostering a culture of innovation – has proven to be
just as critical to ensuring these initiatives succeed. Our study
also revealed that firms with a decentralized approach
to innovation are more likely to be leaders in transformation."
AI-Centric Customer Experiences Anticipated to Be the New
Norm
Personalized and seamless digital customer experiences have
become an expectation in the financial services industry. In fact,
40% of respondents indicate that being customer obsessed with
priorities deeply rooted in client needs is the top accelerator of
digital transformation.
Fueling many of these changes in the customer experience
paradigm is AI. Seventy percent of leaders (52% overall) indicate
that they are prioritizing their AI investments in customer
interaction to fuel stronger and more meaningful customer
engagement. When it comes to Generative AI, leaders are more likely
to be making large or moderate investments in the technology (44%),
more than twice the level of non-leaders.
Despite the higher levels of investment by leaders, the lower
cost of entry to deploy GenAI may allow non-leaders to get in on
the action more easily, enabling them to catch up in their efforts
to deploy the technology to both customer-focused and internal use
cases.
Focus on Talent and Culture for Innovation Initiatives to
Succeed
There have been significant IT advancements year-over year,
however there is still work to be done in enterprise-wide skills
development. Only 28% of all executives surveyed have reached the
advanced stages of implementing a digital skills and talent
strategy, a year-on-year increase of 4%.
In addition to the technology aspects of transformation, digital
leaders have not neglected the human side. Seventy-one percent of
leaders have reached the advanced stages of implementing digital
skills and talent strategy, compared with 12% of non-leaders. A
further 85% say they have created an advanced innovation culture
versus 24% of non-leaders.
Cyber Risks are Still a Top Challenge
As financial organizations accelerate digital customer
experiences, they continue to put enormous effort into
strengthening trust and security.
Over the next two years, financial institutions plan to
boost their investments in cybersecurity by 28% on average;
impacting their internal security protocols, but also how they
engage with third-party technology vendors. According to the study,
cybersecurity is the top capability executives say they expect from
their technology vendors, outpacing their ability to deliver
projects on time and on budget and building next-generation
technologies into their solutions.
Executives also cited cybersecurity risks as the top challenge
currently inhibiting the pace of digital transformation at their
company.
Tech executives, who often understand the risks of an insecure
environment more than other senior leaders, tend to care more about
cybersecurity than business executives.
The full 2024 Digital Transformation and Next-Gen Tech Study can
be found here.
Methodology
This Broadridge survey was conducted by ThoughtLab Group to
understand how financial services companies are digitally
transforming and adopting next-gen technologies. C-suite executives
and their direct reports from 500 financial institutions globally
on the buy side and sell side were surveyed, with fielding
completed in Nov 2023. The total
assets or AUM of companies in the sample ranged from $1 billion to over $250
billion. The study scored firms on a range of factors
related to progress with digital transformation. Firms were then
categorized as digital leaders or non-leaders in the Broadridge
Digital Transformation Maturity Framework. For further details on
survey methodology, please contact a Broadridge media
representative.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with over $6 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 $10 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 14,000 associates in 21 countries.
For more information about us, please visit
www.broadridge.com.
Broadridge Contacts:
Investors:
Edings Thibault
Head of Investor Relations, Broadridge
broadridgeir@broadridge.com
Media:
Gregg
Rosenberg
Global Head of Corporate Communications
Gregg.Rosenberg@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.