New Research Outlines How to Use Digital Innovation to Achieve Long-Term Value
A global survey of 2,000 investors and 500 investment providers sponsored by State Street Corporation (NYSE: STT) has identified three aspects of data that will define stewardship for the digital age: Integration, the ability to combine both structured and unstructured data; Intelligence, the ability to draw new insights with the help of emerging technologies that will enable improved decision-making, performance measurement and client centricity; and Integrity, the ability to better safeguard data with the highest levels of security.
The new report titled, “Finance Reimagined: Finding Long-Term Value in a Digital Age”, combines quantitative research with views from industry experts, to explore how firms across the financial services industry are using digital technologies to enhance their businesses.
The 150 investment providers surveyed in Asia Pacific (APAC) — including universal banks, mutual funds, alternative investment firms and fintech start-ups — cited new technology as one of the main trends redrawing the marketplace in the next five years; and 87 percent say digital transformation is important for the future of their organization.
Despite this clear understanding of the importance of digitization, providers in the region showed great variance in their pace of embracing new technologies:
“Digital transformation is driving a seismic shift in the investment industry,” said Lou Maiuri, head of State Street’s Global Markets and Global Exchange businesses. “While it’s critical to understand how new technologies can deliver immediate improvements in efficiency and insight, to become digital leaders, those in the finance industry also need a long-term vision for digital transformation that goes beyond simply adding the latest technologies to an existing infrastructure.”
“This survey underscores the importance with which providers in this region view digital transformation,” said Mark England, Head of Asset Manager Sector Sales, Asia Pacific. “The region has some unique challenges, in terms of localized investor needs and a complex regulatory environment. The winners will be able to navigate these challenges while forging enterprise-wide digital transformation and a culture of sustained innovation in their organizations.”
The report also identifies how investment firms can recognize and act on opportunities to digitize aspects of their organizations by highlighting several shared beliefs of digital leader globally:
“We’re focused on how deep-rooted digital innovation can generate new value for our clients by developing highly personalised, data-driven products that appeal to a broader range of investors,” continued Maiuri. “By increasing the ability of institutions to understand and act on their investors’ needs, the three I’s enable the financial leaders of the future to create transparent, flexible services that increase trust and confidence in the sector — redefining stewardship for the digital era.”
Like firms, individual investors surveyed globally believe digital technology is the way forward, and admit they are more likely to work with established financial partners over fintech companies.
“New digital technologies will enable firms to provide a more fluid, dynamic and interactive investment experience for clients,” added Antoine Shagoury, chief information officer, State Street. “Moreover, they will help the industry to deliver the type of personalization investors are increasingly demanding, at scale. Firms that neglect to understand and embrace emerging technologies from Blockchain to artificial intelligence will also fail to remain competitive in this new era of finance, while those who live and breathe the digital revolution will be those who define the future of the sector.”
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $29 trillion in assets under custody and administration and $2,47 trillion* in assets under management as of December 31, 2016, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com
* AUM reflects approx. $30.62 billion (as of December 31, 2016) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for decisions based on such information and it should not be relied on as such.
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Expiration Date: 01/31/2018
 Roubini ThoughtLab conducted a rigorous research program from March to July 2016. This research was sponsored by State Street surveying a total of 2,000 investors and 500 wealth service providers across 10 leading markets, including the US, the UK, Germany, Australia, China, Hong Kong, Mexico, Canada, Switzerland, and Japan.
 There were 50 respondents in each of these Asia Pacific markets – Australia, Japan and China & Hong Kong.
 Leaders are defined as those at an advanced stage of digital transformation. When asked how they compare with other firms in their industry sector in applying digital technologies to transform business strategies, processes, and services, they answered “moderately ahead of most competitors” or “far ahead of most competitors.” By contrast, Laggards are defined as those who are behind the curve in terms of digital transformation.