More than half (57 per cent) of financial services firms see digital transformation as a priority, Broadridge’s 2023 Digital Transformation and Next-Gen Tech study has found.
The study, which polled 500 C-suite executives, found that in terms of new technology, 71 per cent of participants reported that artificial intelligence is ‘significantly changing the way they work’. 60 per cent believe that DLT and blockchain will be at the centre of financial markets infrastructure within the next decade.
These predictions are reflected in technology investments across firms. 27 per cent of companies’ IT budgets are spent on digital transformation, the report adds, a considerable 16 percent increase from 2022’s study. Furthermore, 57 per cent believe that falling behind others in regard to digital transformation will prompt talent acquisition problems later on.
Among firms classified as digital transformation leaders, Broadridge reports that there will be an average 16 per cent increase in quantum computing investment and only a five per cent increase in metaverse investments.
Considering the divide between digitally native and traditional firms, the study found that the former are more likely to prioritise and invest in digital transformation. 17 per cent state that they are at the ‘advanced stages’ of emerging technology deployment, a figure that drops to seven per cent among traditional firms.
Broadridge’s study was completed in November 2022. Firms included hold assets under management between US $1 billion to more than $250 billion, and were categorised as either digital leaders or non-leaders based on Broadridge’s digital transformation maturity framework.
Tim Gokey, CEO of Broadridge, says: “A new chapter in digital transformation is emerging. We see that leading firms are already reaping the benefits from digitalisation and the use of technologies such as AI and DLT as they adapt to economic headwinds and new competitive dynamics. Firms are now looking ahead to what their customers will require five to ten years from now, and how technology can help them to deliver that vision.”
