As part of the Heard at Ops series, Tim Gokey of Broadridge describes the current state of digital transformation in the financial services industry, the potential impacts on operations and the customer experience, and what’s driving the next phase. Watch the video and read the Q&A below.

Q. Digital transformation is about to enter a new phase. Where is the industry today and what will drive this next chapter?

We recently completed our third annual industry study on digital transformation. We spoke to over 500 executives – a mix of business and technology executives globally.

Over half of them said that digital transformation is the most important initiative going on in their company. Interestingly, 63% said it is even more important now with all the external changes [that the industry is experiencing]. They talked about technologies including artificial intelligence (AI), digital ledger, and the digitization of end-to-end client experiences – of course, all built on a foundation of data.

As we talk to our clients about their transformation journeys, it is not just an operations conversation or just a technology conversation but a conversation with the two of them together.

Q. Describe the potential impact on operations and the customer experience.

We have heard during SIFMA Ops a tremendous focus on T+1 and we are less than a year away from that. I think the question is: how can firms use those efforts as a catalyst for other things that they want to get done? That certainly starts with having clean data that represents the full customer experience and layering digitalized experiences on top of that. Then, over time, AI on top of that.

In wealth management, we can create real value through digitalized experiences – whether that is client onboarding and servicing, corporate actions, tax, and more. And we can’t leave aside the next-generation communications experience, which is the opportunity to bring together customer communications and regulatory communications into a new paradigm for a better investor experience. With our early-adopter clients, we are seeing that 90% of investors prefer a new experience.

Q. What’s ahead in digital transformation and what should firms consider?

I believe tokenized assets are going to be a real area in the future. We are working on digital ledger repo and doing over $70 billion a day of repo transactions. I have done our first two intraday transactions with Bank of America and UBS, and I think that is going to provide a new paradigm of intraday liquidity over time.

As firms consider the next leg of digital transformation, it is really going to be a combination of having a long-term roadmap with near-term wins along the way. The long-term road map shows where you are going and the foundational capabilities that you will need – like that common data layer – and adding in the near-term wins to help pay for that long-term program.

For example, the next-generation communications experience that I mentioned earlier can produce tangible savings within 6 to 9 months – and that can help pay for some of the longer-term transformation.

Tim Gokey is Chief Executive Officer of Broadridge Financial Solutions, Inc.

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