The study reflects the attitudes towards digital technology present in sectors including private banking and wealth management, although the report did not specifically mention those sectors. Thirteen per cent of all executives surveyed were from wealth management firms. 

A study from New York-listed Broadridge Financial Solutions finds that three-quarters of executives at financial institutions are confident that they have their technology journey in hand, but there’s a split between leaders and the rest of the pack.

While more than two-thirds say they have made meaningful progress in modernising their core IT platforms, the survey found that firms must innovate to grapple with generative AI, cybersecurity challenges, and demands for digital customer experiences.

Perhaps more concerningly, the study also found that only 28 per cent of all executives are in advanced stages of putting a digital skills and talent strategy into place.

Findings come from the 2024 Digital Transformation and Next-Gen Tech Study, which is based on the views of 500 global C-suite and senior executives across the buy side and sell side.

The study reflects the attitudes towards digital technology present in sectors including private banking and wealth management, although the report did not specifically mention those sectors. Thirteen per cent of all executives surveyed were from wealth management firms.

The study categorised firms as digital "leaders" versus "non-leaders," based on their advancement levels across 10 essential aspects of digital transformation, including modernised core IT, the use of automation tools, innovation culture, data management, and digital customer experiences, among others. 

Infrastructure
On infrastructure, more than 80 per cent of all executives indicate that they are making the biggest day-to-day investments in building an advanced IT cloud platform. Most executives also expect to maintain or increase their investment in next-gen technologies such as AI, quantum computing, crypto/digital assets, and blockchain over the next two years.

“We are seeing significant momentum across financial services as firms leverage new technologies like GenAI to solve their most pressing business challenges, while also gaining measurable value from more established forms of AI, blockchain, cloud and core infrastructure technologies,” Chris Perry, president of Broadridge, said.

The financial services sector expects “personalised and seamless” digital customer experiences. Some 40 per cent of respondents indicate that being customer obsessed with priorities deeply rooted in client needs is the top accelerator of digital transformation. 

AI
Perhaps unsurprising, AI affects changes in customer experiences. Some 70 per cent of “leader” organisations, and 52 per cent overall, indicate that they are prioritising their AI investments in customer interaction to fuel stronger and more meaningful customer engagement. 

In other findings, 71 per cent of leaders have reached the advanced stages of implementing digital skills and talent strategy, compared with 12 per cent of non-leaders. A further 85 per cent have created an advanced innovation culture versus 24 per cent of non-leaders.

Cybersecurity
Over the next two years, financial institutions plan to boost their investments in cybersecurity by 28 per cent on average; impacting their internal security protocols, but also how they engage with third-party technology vendors. 

According to the study, cybersecurity is the top capability executives say they expect from their technology vendors, outpacing their ability to deliver projects on time and on budget and building next-generation technologies into their solutions.