Financial services firms are going digital at a faster pace, Broadridge survey finds – InsuranceNewsNet

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Financial services firms that have invested in next-generation technologies and continued their digital transformation push in 2021 are already feeling the positive effects of these investments, according to a new global survey of 750 financial services firms, released today by the world leader in fintech Broadridge Financial Solutions.

Broadridge Next Generation Technology Survey rated the companies on progress in three key areas of digital transformation: experiences, workflows and analytics. It also assessed the progress made in developing the strategic and organizational components of transformation, as well as the use of next-generation technologies such as AI, blockchain and cloud to classify companies as beginners, implementers , Advanced, or Leaders in Broadridge’s Digital Transformation Maturity Framework.

Broadridge’s survey of next-generation technology adoption found that executives at financial services firms who were more advanced in their digital investments were 1.5 times more likely to report an increase in revenue as a result of their digital transformation than those who were in the previous stages.

“This year’s survey confirms that leading companies are more motivated than ever to implement the key pillars of a digital-enabled future. As a result, digital transformation leaders are experiencing accelerated growth,” said Tim Gokey, Chairman and CEO of Broadridge. “Digital leaders succeed with a clear vision and roadmap that prioritizes digitalized communications, experiences, and workflows by leveraging solid data and analytics.”

Key Drivers of Digital Transformation: Customer Experiences and Communications

In 2021, financial services organizations continued to invest in digital channels to stay connected with their customers, with the majority of respondents citing the need to improve customer experience as a key driver of their digital transformations.

Digital communications have become more vital during the pandemic as businesses seek to deliver a more seamless, personalized and interactive experience across all channels to keep up with changing customer expectations.

As a result, three-quarters of companies are now prioritizing digitized customer experiences. When it comes to the top three priorities for digital transformation over the next two years, customer interaction was the highest priority (77%), followed closely by operations (69%) and sales and marketing. (68%).

While around 75% of all companies surveyed are in the intermediate to advanced stages of digitizing and transforming their customer experiences, around 25% still have work to do to keep up with industry leaders.

Prioritize AI, blockchain and cloud implementation

In terms of next-generation technologies that underpin digital transformation, artificial intelligence (AI) has seen the biggest leap in implementation levels in financial services firms. It rose from a quarter (25%) of companies at intermediate 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 companies plan to continue accelerating their AI journeys – more than three-quarters of companies expect to be in intermediate to advanced stages of implementation over the next two years.

Additionally, the study revealed a steady increase in interest in cloud and blockchain among financial services firms. The survey showed that while 78% of companies have already made significant progress in their use of the cloud in the past year, the number of companies reaching intermediate or advanced levels of implementation has increased to 80%. in 2021 and is expected to increase to 91%. over the next two years.

When it comes to digital ledger technology, a similar trend is emerging. Over the past year, the percentage of companies in the mid to late stages of implementation has more than doubled from 15% to 37%, and blockchain usage will only expand, with more than two-thirds (69%) of companies planning to reach the final stages of implementation in two years.

Although the study showed an increase in the implementation and interest in AI, cloud and blockchain, challenges remain. The top three barriers businesses face in implementing these emerging technologies and accelerating digital transformation are: the rapid pace of technology change, the lack of a roadmap for innovation, and the struggle to modernize IT infrastructure. .

Leaders see progress in data and analytics

Companies ranked as leaders in the maturity framework are making good progress in their use of data and analytics. 95% are at an intermediate to advanced level of implementation; however, only 11% of beginners in the maturity framework were at intermediate to advanced levels of implementation, suggesting the need to focus additional effort on this critical capability.

The study also found that two-thirds of companies have already started implementing a centralized data platform with access to data from all divisions, enabling them to serve customers more holistically and take better strategic decisions.

Full Broadridge Next-Gen Technology Adoption Survey Available here.

Methodology

This Broadridge survey was conducted by ThoughtLab Group to understand how financial services firms are digitally transforming and adopting AI, blockchain and cloud technologies. The study rates companies on human factors, strategic mindset and adoption of next-generation technologies to rank companies as beginners, implementers, ahead or leaders in the maturity framework of Broadridge’s digital transformation. C-Suite executives and their direct reports from 750 financial institutions globally were surveyed, with go-live completed in November 2021. The total assets or AUM of the companies in the sample ranged from $1 billion to over $500 billion. For more details on the survey methodology, please contact a Broadridge media representative.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), a $5 billion global fintech leader, provides the essential infrastructure that powers investing, corporate governance and communications to improve lives financial. We provide technology-driven solutions that drive business transformation for banks, brokerages, asset and wealth managers, and public companies. Broadridge’s infrastructure serves as a global communications hub enabling corporate governance by connecting thousands of public companies and mutual funds to tens of millions of individual and institutional investors worldwide. Our technology and operational platforms underpin the daily trading of more than $9 trillion in equities, fixed income and other securities around the world. A certified Great Place to Work®Broadridge is part of the S&P 500® Index, employing more than 13,000 people in 21 countries. For more information about us, please visit broadridge.com.

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