Investments in AI and Digital Asset Surge While Data and Legacy Tech Challenges Persist, Broadridge Digital Transformation Study Finds
Data harmonization is crucial for successful integration of AI technologies in businesses. A large percentage of firms are investing in AI to improve operations and decision-making processes. Executives predict a substantial increase in the adoption of digital assets and ledger technology in capital markets. This shift highlights the importance of effectively managing and integrating data across various platforms. Data harmonization is essential for maximizing the benefits of AI and digital assets in the financial sector.
Data harmonization is key when it comes to implementing AI and digital assets with 80% of firms making moderate-to-large investments in AI this year; 50% of executives believe there will be a significant adoption of digital assets and ledger technology within the capital markets over the next several years. While 58% of financial services technology and operations executives agree a clear data strategy leads to the maximum rate of return on technology investments, 40% admit to having data quality issues.
Almost half (41%) of executives feel their technology strategy is not moving fast enough at its current trajectory and 46% feel legacy tech is hurting resiliency. Overall, firms expect to allocate 29% of their total IT spend to technology innovation over the next two years, an increase of seven percentage points from last year's study.
Data Strategy as a Priority Focus
Data strategy has accelerated as a priority focus for the financial services industry as AI, digital assets, operational resilience, and personalization become non-negotiable forces in 2025, according to the fifth annual Digital Transformation & Next-Gen Technology Study by global Fintech leader, Broadridge Financial Solutions, Inc.
Today, when the introduction of a new AI model has the power to send shockwaves through financial markets, Bitcoin ETFs are routinely turning over billions in average daily volume, and cybersecurity has become a global mandate, financial services firms can no longer afford half-measures or indecision when it comes to data harmonization or addressing legacy technology.
Key Findings and Evolutions
Over half (58%) of financial services technology and operations executives globally identified data harmonization as the ideal driver for maximizing their return on investment with 60% indicating they're confident their data quality won't cause transformation challenges. Therefore, firms are increasing their spend in this area to ensure they're capable of harnessing transformative technology like AI, digital assets, and cloud platforms to achieve a competitive advantage.
The results of this year's study show an evolution in the way financial services firms are extracting value from GenAI. Key findings include: 72% are making moderate to large investments in GenAI this year, up from 40% in 2024. More than two-thirds (68%) believe that GenAI will have the greatest impact on employee productivity and 35% expect to start seeing ROI from GenAI within six months.
Digital Assets and Cloud Technology
After many years of sitting on the sidelines, digital assets have also captured the focus of financial services executives. Nearly three-quarters (71%) of firms are making major investments in blockchain and distributed ledger technologies (DLT) this year, up from 59% in 2024. Cloud technology continues as the backbone of scalability, operational efficiency, and agility with 86% of firms integrating it into their processes.
"It's really all about straight-through processes and the ability to see consistent data across all products and workflows," said Jason Birmingham, Broadridge global head of engineering. "Firms that are still trying to drive transformation by bolting on point solutions are quickly starting to realize that there is a limit to how much they can accomplish before they address the fundamental flaws in their platforms."
About Broadridge
The fifth annual Broadridge Digital Transformation & Next-Gen Technology Study breaks down the sentiment, reflections, and actions of more than 500 financial services technology and operations leaders from around the world and across wealth management, capital markets, and asset management firms. The study demystifies what's guiding each organization's transformation roadmap and explores their unique approaches to data, AI, crypto, cybersecurity, personalization, and more.
Broadridge Financial Solutions (NYSE: BR) is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. A certified Great Place to Work®, Broadridge employs over 14,000 associates in 21 countries.