Investing in tech to optimize data and modernize data management are the “top priorities” for financial services firms according to research by Fintech Broadridge Financial Solutions, Inc. (NYSE:BR).
The research was “compiled from a survey of 200 financial services professionals, conducted at the recent SIFMA Operations Conference in May 2022.”
With as many as 98% of respondents’ companies investing in their front-to-back-office workflow management, “more than one-quarter (27%) of respondents cite data management tools as their firm’s priority investment.”
In addition to data management, firms are also “investing in AI and automation (23%), more human capital (13%), Cloud-native capabilities (10%) for uniformity, and blockchain technologies (8%) to improve overall efficiencies.”
Vijay Mayadas, President of Capital Markets at Broadridge, said:
“In today’s rapidly evolving world, an optimized workflow is crucial and good clean data is key. And yet, firms are drowning in the complexity of managing and simplifying data without the technology and digital infrastructures in place to support its management, stifling transparency, agility and growth.”
Optimizing and contextualizing data can “lead to better data management and streamline internal workflows.” However, 94% of firms are “facing challenges around effective data use. Legacy or outdated technology stands out as the biggest hurdle that firms face (27%), followed by poor data quality (23%).”
After a year of job-hopping and “The Great Resignation,” it comes as “no surprise that firms are also having a hard time finding the human capital to effectively leverage data.” Nearly one-fifth (19%) say they’re “experiencing an inability to quickly test, onboard, validate or maintain datasets.”
The research “found that more than half of the attendees (57%) confirmed their firms still have progress to make before they reach the advanced stages of their innovation and technology efforts.”
Mayadas added:
“We hear from clients and the survey findings highlight how firms are overwhelmed with the amount of data and limited in how to use it. By assessing ones tech stack and partnering with trusted providers, firms have the opportunity to maximize the capability of their data and improve their workflow management.”
The survey of 200 financial services professionals “was conducted at the 49th Annual SIFMA Operations Conference & Exhibition in Phoenix, Arizona on May 17-18, 2022.”
As covered, Broadridge Financial Solutions is a global Fintech “with $5 billion in revenues, provides the critical infrastructure that powers investing, corporate governance and communications to enable better financial lives.”
They deliver technology-driven solutions that “drive business transformation for banks, broker-dealers, asset and wealth managers and public companies.”
Broadridge’s infrastructure “serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world.”
Their technology and operations platforms “underpin the daily trading of more than U.S. $9 trillion of equities, fixed income and other securities globally.” A certified Great Place to Work®, Broadridge is “part of the S&P 500® Index, employing over 14,000 associates in 21 countries.”
