Mutualization means being able to focus on what you do best.
It allows firms in the industry to share industry solutions for things that are non-differentiating, non-strategic, but necessary.
To collaborate on emerging technologies like distributed ledger, AI, and machine learning.
Without having to directly invest millions of dollars.
It's really about helping them grow their business from a front, middle, and back office perspective.Firms like to provide unique capabilities to keep their advisors and grow their investor client base.
There is sometimes a temptation to insource some of these non-strategic, non-differentiating activities to save dollars in the short term.
As technology evolves quickly, they realize that it's difficult for them to keep pace with the changing landscape.
The risk of transforming from legacy systems to new technology is viewed as a big concern by clients.
It's not a matter of replacing their legacy applications they can do it in a very controlled way focused on individual components that they would like to start with as they look to drive incremental cost savings and reduce risks within their organization.
It can be incremental in nature, delivering value every step of the way.
Many clients are struggling to keep up with regulatory change, they're becoming more frequent and more complex. Broadridge has helped many capital market's clients with mutualized solutions, leveraging our global managed services.
For example, the shareholder rights directive, simply put, compels banks and broker-dealers in Europe to distribute corporate governance disclosures to investors. Broadridge built a utility that works for every single firm in every single region in Europe, large and small. If each firm had tried to implement this rule themselves, it would have cost them way more resources, not to mention, the risk of failure. No one quite does regulations and compliance the way Broadridge does, it's what we do.
By leveraging solutions like our strategic trade and transaction reporting solution, it allows them to take the worry out of things, and it allows them to enter new markets that have regulatory requirements that they may never have addressed in the past.
We have been investing in our platforms for the past several years, and we continually deliver value for our clients, and we get to see how our clients use these solutions and what's working and what's not. That helps us deliver insights that clients do not have on their own.
Broadridge sits in the center of the financial services industry. We help our clients be ready for next, and always thinking two steps ahead.
Next never waits.