As the financial services industry faces mounting pressure to transform, a panel of leaders from Citi, Morgan Stanely, SIFMA and ISSA gathered to share how they’re tackling the most urgent priorities—from AI adoption and data silos to cyber resilience and regulation.
Relentless focus on what matters most
According to the Broadridge study, more than 40% of financial services firms say their transformation strategies are not moving fast enough. The research reveals a disconnect between urgency and execution, largely due to operational complexity, shifting regulations, and a lack of internal alignment on priorities.
As Neha Singh, Head of Post-Trade Transformation and Strategic Products at Broadridge, puts it: “We found that financial firms are ramping up their transformation efforts, but they face the challenge of implementing these changes in a rapidly evolving environment while dealing with the limits of legacy technology. All these forces are colliding and creating a sense that transformation strategy is not moving fast enough.”
A live audience poll mirrored these concerns. Attendees were asked what they would prioritize if they had a “magic wand” to accelerate transformation. The top three responses were:
1. A single platform spanning front-, middle-, and back-office operations
2. Full immunity from cyberattacks
3. A unified data source across the organization
These priorities aligned closely with the Broadridge study findings and reflect the industry’s growing recognition that simplification and integration are now strategic imperatives.
The firms getting ahead are those making deliberate bets, aligning operations and technology tightly, and saying “no” to distractions that dilute impact.
“You’re not going to be able to transform everything,” said Stephen Byron, Managing Director, Head of Technology, Operations, and Business Continuity at SIFMA, during the panel conversation. “It’s about being very clear on what those priorities are and what’s going to be the most impactful for your business.”
Data: the unfinished foundation
Nearly half of firms still struggle with data silos, and 40% report data quality issues, according to the Broadridge study.
“We’re only as good in our delivery mechanisms as our data enables us to be,” said Mike Dougherty, Managing Director, Head of Wealth Management Product Operations & Services at Morgan Stanley. “Fixing and streamlining the pockets of data around any large organization is absolutely mission critical.”
“We’re focused on ownership,” added Jamie Healy-Waters, Managing Director of Markets Operations at Citi. “If you can’t trace a data issue back to a team that’s responsible, you can’t fix it.”
Colin Parry, CEO at ISSA, emphasized the upside: “A single source of data simplifies compliance, enables personalization, and is foundational to using AI effectively.”
The message is clear: for most firms, the data foundation still needs serious reinforcement, particularly to enable emerging technologies and regulatory readiness.
AI’s real-world impact is starting to show
GenAI has moved from experiment to implementation. In 2024, only 40% of firms were investing heavily in GenAI. That figure is now 72%, according to the Broadridge study.
During the panel, Jaime Healy-Waters detailed Citi’s operational use cases: “We’re using AI for a variety of services, for example, invoice extraction, and confirmation matching. Our Market Ops team processes over a million emails monthly, and that’s growing by 8% annually.”
Stephen Byron pointed to AI’s role in legacy technology modernization: “Firms are already using AI to convert COBOL to modern code, enabling faster delivery of technology modernization programs. What used to take years now takes months. That’s not hype. It’s already happening.”
And yet, scaling remains a challenge. Two-thirds of survey respondents in the Broadridge study said GenAI’s greatest impact will be on employee productivity, but few firms have built the frameworks to manage risk, compliance, and integration at scale.
Building digital resilience from the inside out
As financial firms digitize more of their operations, resilience has become a strategic necessity—not just a compliance checkbox. Nearly 90% of firms in the Broadridge study say they’re planning major cybersecurity investments, yet many still struggle with outdated infrastructure and fragmented response protocols.
“Understand your firm’s real crown jewels. What are the things you cannot live without?” said Colin. “Build your protection around the things that are most important.”
Stephen echoed the need for proactive planning especially around third-party resiliency: recovery from the next major cyber event could take weeks or even months, especially without foundational upgrades. True resilience isn’t just a technology fix. It requires embedding risk awareness into design, decision-making, and culture.
“Resilience has to be part of the transformation itself, not something you bolt on at the end,” added Jaime. She noted that Citi’s operational upgrades, like automating handoffs across time zones, have strengthened both efficiency and continuity.
Across the panel, a consistent theme emerged: building resilience from the inside out requires tight governance, real-time monitoring, cross-functional ownership, and investment in modern architecture—not just response plans.
Regulatory complexity is slowing progress—but also driving innovation
One of the most pressing challenges is keeping pace with shifting regulatory requirements, especially when they’re incomplete or still evolving.
“The rules are super complex and ever evolving. Being able to lock them down so that you can then build into transformation deliverables can be challenging,” said Jaime.
But regulation isn’t just a blocker—it can also be a catalyst. Stephen noted how regulatory mandates have pushed firms to modernize faster than they might have otherwise: “We’ve seen firms align automation and data strategies with regulatory deadlines to accelerate change. It’s been effective, especially with the U.S. move to T+1.”
Tokenization’s tipping point
What was once an exploratory topic is now accelerating toward real market impact. According to the Broadridge study, 71% of firms are investing in blockchain and DLT, and nearly half expect widespread adoption in the coming years.
“Our survey shows that nearly half of firms expect significant adoption of blockchain and DLT to create new opportunities,” shared Neha Singh. “They expect broader accessibility and rising relevance of cryptocurrencies, and this crypto enthusiasm has only accelerated in the last few months with this massive shift in policy in the U.S., which favors regulatory clarity. and innovation.”
Tokenization is approaching a pivotal moment, particularly for firms engaged in collateral management, private markets, and cash settlement innovations.
Stephen shared that SIFMA’s Regulated Settlements Network pilot successfully used tokenized cash and securities, showing that with the right framework, execution is possible. However, broader adoption still hinges on regulatory clarity.
Culture change is key to scaling success
Culture and governance are often more challenging than the technology itself.
“Our user-led development program—essentially desktop automation with strong governance—has become a massive success,” said Mike. “It’s not just about tools. It’s about empowering teams responsibly.”
“Budget constraints, legacy infrastructure, and change fatigue are real,” said Jaime. “Transformation works best when everyone is aligned: ops, tech, and business.”
That internal alignment, the panel agreed, is what allows firms to move from pilots to enterprise-scale change.
Final word: a new playbook for financial leadership
This year’s transformation agenda is clear: break down the silos, invest in productivity-driving AI, embed resilience into every layer, and align around what matters most.
As Stephen said: “It’s not the size of your firm that determines your success. It’s the clarity of your priorities and the strength of your execution.”
To hear more insights from the panelists, view our on-demand webinar.