Digital transformation challenges firms: survey

In financial services, digital transformation is a must if firms want to meet evolving customer expectations and gain market share. Yet financial professionals say they’re underwhelmed by progress on digital transformation, finds a survey by Broadridge Financial Solutions.

Fewer than one in five survey respondents (17%) gave their firms top marks—a letter grade of A—for digital transformation efforts, and less than one-third of respondents (31%) gave their firms a B.

In fact, most firms might be playing catch up when it comes to digital progress: more than half of survey respondents (52%) graded their firms a C or below.

For many firms embarking on digital transformation, hurdles include overhauling legacy technology (41% of respondents), regulatory compliance (22%) and talent and resource acquisition (22%), the survey says.

Overcoming those hurdles could be critical for firms, because survey respondents say the biggest benefits to investing time and energy into digital transformation are improved productivity (46% of respondents) and stronger customer advocacy, loyalty and retention (31%).

Potentially affecting firms’ success, a lack of progress on digital transformation leaves many financial pros to their own devices—literally. Most survey respondents (77%) said they prefer their personal technology to their work technology, perhaps because of the persistence of legacy tech.

In the coming year, survey respondents expect the most significant impact on their businesses will be artificial intelligence (58%), followed by cloud technologies (31%) and blockchain (11%).

About the survey: Broadridge conducted a survey of 100 Canadians financial professionals at it annual client event on Dec. 4, 2018.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.