Over one quarter (27 per cent) of financial firms cite data management tools as a priority investment, along with artificial intelligence and automation (23 per cent), according to a new survey by Broadridge Financial Solutions.
The research, which polled 200 financial services professionals, was conducted at the Securities Industry and Financial Markets Association Operations Conference in May 2022.
Broadridge found that as many as 98 per cent of respondents said they currently invest in their front-to-back-office workflow management, with 13 per cent prioritising investment in human capital, 10 per cent in cloud-native capabilities for uniformity, and 8 per cent in blockchain technologies to improve overall efficiencies.
Though optimising and contextualising data can lead to better data management and streamline internal workflows, the research found 94 per cent of firms face challenges around effective data use. 27 per cent of respondents said they were challenged by legacy or outdated technology, while 23 per cent reported they struggled with poor data quality.
After “The Great Resignation,” the phenomenon that has seen industry participants leave their jobs in droves, it comes as no surprise that financial firms are also having a hard time finding the human capital to effectively leverage data, said Broadridge.
The technology provider found that nearly one-fifth (19 per cent) of industry participants are currently experiencing an inability to quickly test, onboard, validate or maintain datasets.
More than half of the attendees (57 per cent) confirmed their firms still have progress to make before they reach the advanced stages of their innovation and technology efforts.
Commenting on the findings, Vijay Mayadas, president of capital markets at Broadridge, says: “In today’s rapidly evolving world, an optimised workflow is crucial and good clean data is key. And yet, firms are drowning in the complexity of managing and simplifying data without the technology and digital infrastructures in place to support its management, stifling transparency, agility and growth.”
“By assessing one's tech stack and partnering with trusted providers, firms have the opportunity to maximise the capability of their data and improve their workflow management.”
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