Broadridge Study Reveals Insights on AI and Digital Asset Growth

AI and Digital Assets Drive Transformation in Financial Services

The financial services industry is undergoing a remarkable transformation as companies increasingly invest in AI and digital assets. A recent study reveals that 80% of firms are committing to significant investments in AI this year, while 50% of executives anticipate a substantial rise in the adoption of digital assets and ledger technology within the coming years. This shift marks a pivotal moment for organizations aiming to enhance their operational effectiveness and market adaptability.

Significance of Data Strategy

Data harmonization is emerging as a fundamental requirement for implementing these advanced technologies. While 58% of technology and operations executives recognize that a clear data strategy can maximize returns on technology investments, 40% face significant data quality challenges. This disconnection highlights the need for firms to prioritize their data management practices as they strive to innovate and stay competitive in a rapidly evolving landscape.

Legacy Technology: An Obstacle

Many executives feel that their technology strategies are not progressing fast enough, with 41% expressing concerns over the current pace of change. Additionally, 46% believe that legacy systems hinder their resilience in an increasingly competitive market. The study indicates that firms are expected to allocate 29% of their overall IT spending to technology innovation over the next two years, reflecting an increase in commitment to modernization.

Investments in GenAI and Digital Assets

The findings showcase how significantly perceptions of GenAI are shifting within financial services. About 72% of firms are increasing their investments in GenAI this year, a notable climb from 40% in 2024. Moreover, over two-thirds of executives believe GenAI will greatly enhance employee productivity, with 35% looking to see returns on these investments within six months. This trend underscores the essential role of GenAI in the future of organizational efficiency and effectiveness.

Digital Assets Gain Traction

Digital asset investments are no longer a niche concern for financial executives. Nearly 71% of firms are investing in blockchain and distributed ledger technologies, showing an increase from 59% the previous year. Furthermore, 64% are investing heavily in cryptocurrency, indicating a decisive move towards mainstream adoption. The confidence in these assets is reflected in the faith that 47% of executives have in distributed ledger technology enabling new opportunities in capital markets.

Cloud Technology: A Major Player

Cloud technology remains central to business scalability, with 86% of firms incorporating it into their operations and 84% planning moderate-to-large investments in this area. When asked which technology impacts their business most, 31% of executives cited cloud platforms, with 27% looking to increase their investment in this space over the next two years. This emphasizes the essential role of cloud solutions in supporting operational efficiency and agility.

Looking Ahead: A Call for Modernization

Firms struggling with outdated systems must recognize the limitations posed by point solutions and the necessity of addressing fundamental flaws in their platforms. The insights gathered from this year's study further emphasize how companies can no longer afford to sidestep these challenges in the face of rapid technological evolution.

About Broadridge

Broadridge Financial Solutions (NYSE: BR) stands as a global leader in technology, dedicated to aiding clients and the financial services sector in their operations and growth endeavors. The company’s innovations drive governance and investor communications, supporting the trading of over $10 trillion in securities globally.

Frequently Asked Questions

What key investment trends were identified in the study?

Firms are significantly increasing their investments in AI and digital assets, with 80% targeting AI and 71% focusing on blockchain and DLT.

How does data strategy impact technology investment returns?

A clear data strategy is recognized by 58% of executives as essential for maximizing returns, yet data quality remains a challenge for many.

What challenges do legacy systems present to firms?

Legacy technology impedes organizational resilience, with many executives expressing concerns about the inadequacy of their current technology strategies.

What role is GenAI expected to play in the financial sector?

GenAI is projected to significantly boost employee productivity, with a growing percentage of firms planning to invest heavily in this area.

Why is cloud technology crucial for financial services?

Cloud technology is integral for scalability and operational efficiency, with a majority of firms adopting and investing in cloud solutions.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.