Digital transformation is lagging at financial firms in Asia Pacific, according to a recent study by Broadridge, and this is negatively impacting their ability to hire and retain talent.

Of the financial firms in Asia Pacific, 28 percent were classified as ‘beginners’ with regards to their digital transformation process in a handful of areas, according to a study by fintech firm Broadridge entitled «2023 Digital Transformation and Next-Gen Tech». 

This compares to 21 percent of firms in Europe and North America considered digital transformation beginners. 

The contrast is even more evident amongst digital leaders with 3 percent of APAC firms being at an advanced stage of applying next generation technologies like AI, blockchain or cloud, compared to 9 percent in Europe and 12 percent in North America.

Talent Issues

As a result of lagging digital transformation, APAC financial firms are being negatively affected in areas such as their ability to hire and retain talent (63 percent regionally, 57 percent globally).

Nonetheless, there are plans to boost focus with average increased spending of 16-29 percent in investments into core technologies in the next two years. 

Areas that are expected to see the biggest increases are cybersecurity technology (29 percent), Internet of Things (29 percent), data analysis & visualization (27 percent), cloud (26 percent), AI & machine learning (22 percent), blockchain & distributed ledgers (21 percent), open platforms & APIs (17 percent) and robotic process automation (16 percent).

Global Trend

Globally, firms now spend 27 percent of their overall IT budget on digital transformation – a 16 percentage point increase compared to Broadridge’s 2022 study. 60 percent agree that within ten years, blockchain and DLT will become core financial markets infrastructure with 80 percent expecting the industry to modernize its tech stack by the early 2030s. 

«In our work with clients […] we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT,» said Broadridge CEO Tim Gokey. «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 Broadridge study was based on responses from 500 C-suite executives and their direct reports across the buy side and sell side globally.