A recent study by Broadridge Financial Solutions reveals that the gap in digital maturity among financial institutions is widening, despite a strong push towards digital transformation and 75% of executives expressing confidence in their technological roadmap.
This disparity emerges as firms navigate new challenges and opportunities presented by technologies such as Generative AI, along with increasing cybersecurity concerns and the demand for digital-first customer experiences.
The study, which surveyed 500 global C-suite and senior executives, highlights a significant commitment to modernising core IT platforms and adopting next-gen technologies.
More than two-thirds of participants reported substantial progress in IT modernisation, but ongoing efforts are needed across various tech and talent fronts to maintain momentum.
Investment priorities among executives lean heavily towards cybersecurity and cloud computing, with a notable focus on AI, quantum computing, and blockchain technologies for the future.
This investment is partly driven by the expectation that AI-centric customer interactions will become standard, providing more personalised and seamless experiences.
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.
However, the study also points out the critical need for talent development and fostering a culture of innovation within organisations.
While there has been some progress, only a small fraction of firms have advanced their digital skills and talent strategies significantly.
The difference in innovation culture and talent strategy implementation between leaders and non-leaders is stark, emphasising the importance of human factors in successful digital transformation.
Cybersecurity emerges as a top concern, with companies planning to increase their investment to strengthen trust and security significantly.
This focus extends beyond internal protocols to expectations from technology vendors, highlighting the growing emphasis on secure digital environments in financial services.
The Broadridge 2024 Digital Transformation and Next-Gen Tech Study, conducted in collaboration with ThoughtLab Group, aims to shed light on the digital transformation journey of the financial services sector.
It assesses companies based on their progress across ten key aspects of digital transformation, identifying the leaders and those falling behind in adapting to the digital age.
“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.
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.”
said Chris Perry, President of Broadridge.
