As the global Financial Technology sector accelerates its push into AI and digital assets. It’s also coming face-to-face with the complexities of outdated systems and fragmented data. Despite major investments in next-gen technologies. Many firms are still struggling to harmonize their data and modernize their tech stacks fast enough to keep up.
A new report from Broadridge Financial Solutions—The fifth annual Digital Transformation & Next-Gen Technology Study—reveals that 80% of financial services firms are pouring moderate to large investments into artificial intelligence this year. This comes as firms across wealth management, asset management, and capital markets brace for a wave of digital disruption.
The study, which surveyed over 500 global technology and operations leaders, highlights the strategic priorities shaping fintech transformation. From AI to cybersecurity, and digital assets to data strategies. The findings shed light on how firms are responding to both opportunities and growing pains in a digital-first era.
Yet, even with this momentum, key roadblocks remain.
While more than half of executives (58%) agree that a clear data strategy is essential for realizing returns on tech investments, 40% still report ongoing issues with data quality. At the same time, nearly half of respondents feel their tech transformation is falling behind. And 46% say legacy systems are undermining their operational resilience.
To keep pace, financial institutions are adjusting their budgets—shifting more focus to innovation. According to the study, 29% of total IT spend over the next two years is expected to go toward technology innovation, marking a 7% increase from last year.
This shift couldn’t come at a more pivotal time. As new AI models shake up financial markets and Bitcoin ETFs draw billions in daily trading. Data strategy is no longer just a back-office concern—it’s a business imperative.
Chris Perry, President of Broadridge, emphasizes this point. “As firms move away from legacy platforms, they’re discovering that better data management can unlock real gains,” he said. “It breaks down internal silos and supports the kind of data quality that AI needs to actually work at scale.”
One area gaining special attention is data harmonization. More than half of the surveyed executives (58%) say it’s the key to unlocking stronger ROI from their tech efforts. Meanwhile, 60% feel confident that data quality won’t derail their digital ambitions. A sign that more firms are taking a proactive approach.
AI and digital assets are at the heart of this transformation wave. Investment in generative AI is up significantly—72% of firms are now making moderate to large investments in Gen AI, compared to just 40% last year. What’s more, 68% of respondents expect Gen AI to reshape workforce productivity, and 35% believe they’ll begin seeing ROI within just six months.
Digital assets are also rising fast on the priority list. Whether it’s crypto, tokenized securities, or blockchain-based financial tools, 71% of firms say they’re making big moves in distributed ledger tech—up from 59% last year. Investment in cryptocurrency is following a similar trend, jumping to 64% from 51% in 2024.
That said, many leaders still expect more oversight in this area. Nearly three-quarters (73%) anticipate tighter governance and regulation around digital assets, even as nearly half (47%) see blockchain as a springboard for new opportunities in capital markets.
Cloud computing is another pillar of fintech’s digital overhaul. According to Broadridge’s data, 86% of firms are now embedding cloud into their workflows, and 84% are making moderate-to-large investments this year alone. About one-third of executives say cloud platforms have had the biggest impact on their operations so far, and 27% plan to increase spending over the next two years.
This trend marks a clear shift away from disjointed solutions. Instead, the focus is now on integrated, cloud-native infrastructures that provide a consistent data layer across every part of the business.
“It’s all about seamless processes and consistent data visibility,” explains Jason Birmingham, Broadridge’s Global Head of Engineering. “Firms relying on patchwork fixes are quickly hitting a wall. Without fixing core platform issues, they simply can’t scale transformation.”
With AI, cloud, and digital assets gaining traction, the financial services sector is clearly betting on technology to redefine the future. But as this study shows, the ability to harness data effectively—and escape the grip of legacy tech—may ultimately decide who leads and who lags behind.
