Over half (58%) of Canadian financial services firms said that “increased productivity and resulting lower costs” was the top area of improvement within their company as a result of digital transformation, according to Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader, in its fourth annual survey on Canadian digital transformation. The majority of respondents (71%) shared that improving efficiencies is the primary goal for their technology spend in 2022, followed by increasing revenue (17%) and lowering costs (12%).
“Over the course of 2021, Canadian financial services firms found digital transformation paramount in improving efficiencies and driving down costs. The right digital tools can help companies better connect with and retain clients, especially as customers increasingly expect and demand a cutting-edge, technology-driven experience,” said Michael Dignam, President of Broadridge Financial Solutions, Canada. “While digital transformation is an ongoing evolution, businesses are accelerating their adoption of technologies such as the Cloud, AI and Blockchain and finding significant business impact as a result.”
When asked which classically Canadian food dish best described their company’s experience with digital transformation over the past year, 38% of respondents chose “Double Double,” denoting optimism, down slightly from 44% in 2020 and 49% in 2019. Other common Canadian foods that describe companies’ experience with digital transformation included “Hawaiian Pizza” (neutral, 24%), “Timbiebs Timbits” (unconvinced, 19%), “Poutine” (accomplished, 15%) and “Lay’s Cinnamon Bun Chips” (negative, 4%).
Cloud Technology Continues to Underpin Innovation
Cloud continues to be the digital technology with the most significant impact on business, according to 56% of respondents (up from 51% in 2020 and 41% in 2019). This was followed by AI (41%, up from 34% in 2020) and Blockchain (3%, down significantly from 15% in 2020).
When asked to grade their company’s digital transformation efforts, 53% of respondents gave themselves an “A” or “B”, down slightly from 66% in 2020 and 64% in 2019. Forty-five percent of respondents gave themselves a “C” or below, up from 33% in in 2020 and 37% in 2019, demonstrating a slip in confidence among Canadian financial services firms as they digitally transform their businesses.
Hurdles Remain for Adoption, Yet Firms Continue to Innovate
In 2021, “resources” moved to the forefront as the biggest hurdle companies face when it comes to digital transformation, followed by legacy technology and data analytics.
Despite the hurdles that firms are facing when it comes to digital transformation, many continue to execute on their technological goals. When asked about their top goals for implementing new technologies, 44% ranked “improving user experience” as their top goal, in addition to consolidating/integrating multiple systems, modernizing for regulatory or market trends, digitizing for the future and future-proofing their environment for a competitive advantage.
To read more about the research results click here.
The survey of 102 Canadian financial services professionals was conducted via email. For further details on survey methodology, please contact a Broadridge media representative.