Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

Rick Steves

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

A majority of financial services firms now view digital transformation as essential to their business and are doubling down on their financial commitments as they anticipate further widescale adoption of new and more powerful tech, according to the 2023 Digital Transformation and Next-Gen Tech Study by Broadridge Financial Solutions.

According to the survey, firms now spend 27% of their overall IT budget on digital transformation – a 16 percentage point increase versus the same 2021 study.

The study also revealed a new chapter in digital transformation is emerging – adapting to a digital world and embracing the potential of new tech now underpins all major core business strategies.

Some other notable findings from the survey include:

  • 80% of survey respondents say the industry will have modernized its tech stack before we land a human on Mars
  • 60% of survey respondents agree that in 10 years, blockchain and DLT will become the core of financial markets
  • 71% of survey respondents said artificial intelligence (AI) is now significantly changing the way they work, and 60% agree that within ten years, blockchain and distributed ledger technology (DLT) will become the core of financial markets infrastructure.

Study categorized firms as digital “Leaders” versus “Non-leaders”

Tim Gokey, Chief Executive Officer of Broadridge, said: “A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics. Firms are now looking ahead to what their customers will require five to ten years from now, and how technology can help them to deliver that vision.”

The study categorized firms as digital “Leaders” versus “Non-leaders”, based on how advanced they are in 10 of the most essential aspects of digital transformation. These aspects include their innovation culture, use of emerging technologies, seamless customer experience (CX), internal skill-building, and adoption of security and privacy protocols.

Broadridge’s 2023 study, which surveyed 500 C-suite executives across the buy side and sell side globally, found that more than half of digital Leaders (53%) view higher revenue growth as one of the most important benefits of digital transformation.

Yes for AI, data, blockchain. “Wait and see” for metaverse

Investment in next-gen technology is now understood to be essential in preparing for the future. Fifty-seven percent of firms agree that falling behind in digital transformation will hurt their ability to attract and retain talent, further impeding their ability to unlock new and innovative tools and platforms.

Regarding AI, data analytics, and real-world applications for blockchain and DLT, 80% of survey respondents believe the industry will have modernized its tech stack before early 2030. More nascent technologies are expected to make significant progress as well as leaders plan to increase investment in quantum computing by 16% on average over the next 2 years. Metaverse, however, is now currently under a “wait and see” approach.

Online banks, brokers, robo-advisors prioritize transformation

The study examined the differences between traditional financial firms and Digital Natives, defined as online banks, brokers, robo-advisors, and digital wealth management firms established in the last 15 years and not part of an incumbent firm.

The report found Digital Natives are more likely than traditional firms to place transformation as their most important strategic priority (78% versus 51%), marked by greater increases in digital investments.

Seventeen percent of digital natives also report being at the advanced stages of deploying AI, blockchain, cloud, and other emerging technologies, versus 7% of traditional firms.

Read this next

Metaverse Gaming NFT

Mon Protocol and Pixelverse Forge a Groundbreaking Partnership to Revolutionize Blockchain Gaming

Mon Protocol and Pixelverse make history in the annals of Blockchain gaming as they set up the architecture for the melding of their technologies.


Nimiq Pay Launch: A New Standard For Self-Custodial Crypto Payments

Nimiq, the blockchain ecosystem for payments that is designed to make cryptocurrency easy for everyone to use, has taken the first concrete steps towards its goal of becoming the world’s most widely-accepted digital asset for payments with the launch of Nimiq Pay.

Inside View, Interviews

Exclusive: GoMining’s Mark Zalan wants to democratize opportunities of Bitcoin halving

As the Bitcoin community counts down to the upcoming Bitcoin halving, Mark Zalan, CEO of GoMining, shared exclusive insights into how the company is gearing up for this pivotal event in the cryptocurrency world.

Digital Assets

Umoja Partners with Merlin Chain to Launch Revolutionary Bitcoin-Based Synthetic Dollar – USDb

Umoja, an innovative smart money protocol, has embarked on a strategic partnership with Merlin Chain, a leading Bitcoin Layer-2 network, to introduce USDb, the first Bitcoin-based, high-yield synthetic dollar.

Crypto Insider

Bybit Report Highlights Imminent Bitcoin Supply Shortage and Rising Scarcity Post-Halving

Bybit, recognized as one of the top three cryptocurrency exchanges globally in terms of trading volume, has recently published a comprehensive report highlighting the future supply constraints of Bitcoin.


BlockDAG Outshines XRP Price Breakout and Uniswap Crypto Forecast with 20,000x ROI Potential and Teaser for Keynote on Moon

BlockDAG has become the latest sensation in the crypto world, which has taken the spotlight by storm, overshadowing even the most optimistic projections for XRP’s price breakout and Uniswap’s crypto forecast.

Digital Assets

Binance announces blockchain courses at European universities

“Education plays a pivotal role in advancing adoption and fostering opportunities as these technologies redefine our future and global economic landscape.”

Fintech, Uncategorized

Kepler Cheuvreux taps Adaptive for new execution equities platform

KCx, Kepler Cheuvreux’s execution division, has partnered with trading technology firm Adaptive Financial Consulting to create a new event-driven trading system based on Aeron and its own Hydra technology.


Bybit Livestream: Thought Leaders from Bybit, OKX and Wintermute on the 2024 Crypto Market Bull Run, April 19. Register and Secure Your Spot Now.

In a post-ETF and BTC halving world, a new era has opened as the infrastructure in the crypto industry has changed tremendously from the last bull run and halving cycle.