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Industrials
Title: Surge in AI and Digital Asset Investments Reshapes Financial Services, Finds Broadridge Study
The financial services industry is undergoing a profound transformation as investments in artificial intelligence (AI) and digital assets dramatically increase, according to the latest research from Broadridge Financial Solutions. The fifth annual Broadridge Digital Transformation & Next-Gen Technology Study reveals key insights about how firms are adopting cutting-edge technologies like AI, blockchain, and cloud computing to modernize operations, enhance productivity, and secure competitive advantages in a rapidly evolving market.
The comprehensive study, released on April 3, 2025, highlights a surge in technology innovation budgets, with firms planning to allocate 29% of their total IT spend to technology innovation over the next two years, marking a 7 percentage point jump compared to last year[1][3][4]. This increase underscores the critical role of AI and digital assets in financial sector growth strategies.
After years of cautious observation, digital assets—including blockchain, distributed ledger technology (DLT), and cryptocurrencies—have moved to the forefront of financial innovation:
One of the critical themes identified by Broadridge is the importance of data harmonization and quality as a cornerstone for realizing AI and digital asset potential. Over half (58%) of financial services technology and operations executives agree that a clear and harmonized data strategy maximizes return on technology investments[1][3][4].
However, 40% of respondents still face data quality challenges, hindering transformation efforts. Meanwhile, 41% feel their current technology strategies are moving too slowly, and 46% believe legacy systems are undermining operational resilience[1][3][4].
Chris Perry, President of Broadridge, remarks:
“The right data management strategy breaks down silos and achieves the data quality needed to unlock AI’s potential, sustain digital transformation, and enable innovation at scale… Driving transformation requires addressing legacy technology and investing strategically in data.”[1][4]
Alongside AI and digital assets, cloud platforms remain the dominant enabler of financial technology innovation:
Jason Birmingham, Broadridge’s global head of engineering, emphasizes:
“It’s about straight-through processes and consistent data across products and workflows. Firms relying on bolted-on point solutions are reaching limits—real progress requires fixing foundational platform issues.”[1][4]
Despite the optimism around AI, digital assets, and cloud computing, firms face ongoing hurdles:
Executives acknowledge that addressing these issues is imperative for sustained growth and competitive advantage.
This year’s study surveyed over 500 senior technology and operations leaders from financial institutions worldwide, spanning wealth management, asset management, and capital markets. The research provides a nuanced view into how organizations are crafting their transformation roadmaps, investing in emerging technologies, and managing risks linked to legacy systems and data.
The findings reflect a pivotal shift from exploratory investments to mainstream adoption of AI, digital assets, and cloud platforms in financial services.
As firms continue redirecting IT budgets toward innovation—driven by competitive pressures and market opportunities—the Broadridge study highlights a clear pathway: those that can modernize legacy systems, implement robust data strategies, and embrace AI and digital assets will lead the next era of financial transformation.
| Topic | Key Statistic | Trend / Insight | |----------------------------|---------------------------------------------------|---------------------------------------------------| | AI investments | 80% firms making moderate-large AI investments | Rapid growth, 72% investing in GenAI (vs 40%) | | GenAI impact | 68% expect productivity boost | 35% anticipate ROI within 6 months | | Digital assets adoption | 71% investing in blockchain/DLT | Cryptocurrency investments rose to 64% | | Data strategy importance | 58% say data harmonization maximizes ROI | 40% still face data quality issues | | Legacy tech concerns | 46% say legacy systems hurt resilience | 41% feel tech strategy is too slow | | Cloud adoption | 86% integrated cloud; 84% investing this year | Seen as backbone of agility and efficiency | | Overall tech innovation spend | 29% of IT budget, up 7 pts from last year | Accelerated innovation investments |
The Broadridge Digital Transformation study paints a compelling picture of an industry at a transformative crossroads. Surge investments in AI, generative AI, digital assets, and cloud infrastructure are setting the pace for innovation in financial services in 2025 and beyond. Firms that strategically address data and legacy technology challenges will unlock new operational efficiencies, customer experiences, and market opportunities — positioning themselves as leaders in the next-generation financial ecosystem.
This landmark report offers critical insights for industry players, investors, and technology partners eager to understand the future direction of fintech innovation.
This article is based on the Broadridge Digital Transformation & Next-Gen Technology Study, released April 3, 2025.
