Blockchain and digital ledger technology (DLT) will “reduce the need for intermediaries like custodians and clearing houses”. This is the expectation expressed by 36 per cent of respondents in Broadridge’s annual Digital Transformation and Next-gen Technology Study, which is now in its fourth year.
Those investing in blockchain see the technology as a way to save time and resources in areas such as trading and transactions, as well as back-office operations. The study also reveals that firms have plans to increase investment in blockchain infrastructures by 20 per cent on average over the next two years.
Among those defined by the study as “transformation leaders” according to progress in 10 key dimensions, 57 per cent consider themselves mid-implementation of such infrastructures.
Good practices
The paper further identifies five trends that are “defining excellence” in the financial services industry: steady investments into transformation that pay dividends in the form of technological maturity, technology used to meet and exceed customer expectations, targeted investment in scaling AI and unlocking GenAI, cyber resiliency, and people-powered innovation.
A total of 500 C-level and senior executives representing firms from across the financial services spectrum took part in this year’s study. They cover 18 countries and average total estimated assets or assets under management (AUM) of US$122 billion.