Broadridge Financial Solutions, Inc. (NYSE:BR) has released a new report based on research by Greenwich Associates, which examines the impact that cloud computing, artificial intelligence, and blockchain or distributed ledger technology (DLT) will have on capital markets firms.
The report – “Pathways to Profit: Leveraging Next Generation Technology to Drive Profitable Growth” – reveals that financial institutions are challenged to find the expertise needed to realize the full potential of new disruptors and therefore adopt a partnership approach to mutualize investment on non-differentiating business functions.
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Specifically regarding blockchain, the report explains that DLT skills are in short supply, and DLT inherently requires multiple institutions to agree on an approach. Third-party partners can help in both regards. Broadridge’s work with JP Morgan, Santander, and Northern Trust in global proxy is given as an example.
“While banks are poised to benefit from rising interest rates, stronger economic conditions, growing profits, and buoyant stock markets, leading firms are establishing partnerships with technology specialists to enhance their operational infrastructure and secure their future,” said Tim Gokey, President and Chief Operating Officer of Broadridge. “These fintech providers offer an important resource to banks, providing knowledge in areas where these institutions are resource constrained and enabling them to focus on ways to augment their own unique business offerings.”
“Beyond the application of these new technologies, working with industry partners can drive new networks that bring value to all participants,” said Charlie Marchesani, President of Global Technology and Operations (GTO) at Broadridge. “New examples include accelerating securities settlement for interested parties to new modes to trade illiquid fixed-income securities to opportunities to drive efficiencies for buy-side to sell side reconciliation, these advances are taking shape and have the potential to create significant benefits.”