As the financial services industry accelerates into a digitally driven future, cybersecurity and operational resilience have become critical focal points, according to Neha Singh, Head of Post Trade Transformation and Strategic Products at Broadridge.
The findings of the Broadridge 2025 Digital Transformation & Next-Gen Technology Study reflect an industry grappling with new threats and old infrastructure.
“It’s no longer a conversation about if an attack will happen, but whether firms will be ready when it does,” she said, reflecting on the 41% of technology and operations leaders who identified data security as a top concern.
Singh pointed to three persistent challenges shaping the cybersecurity landscape.
First, the threat environment is becoming more sophisticated.
Cyberattacks are no longer isolated events; they are frequent, well-coordinated, and increasingly fueled by artificial intelligence. “Bad actors are gaining more funding, sharing knowledge, and using AI to automate attacks,” Singh explained.
Second, legacy technology continues to hinder progress: “46% of firms agree that outdated systems are limiting their resiliency strategy,” she said, noting that modernizing these systems is now a key driver of increased technology spending.
Third, there’s a critical need to better integrate cybersecurity into core operations: “More than one-third of firms still don’t have cybersecurity technologies embedded in their operational infrastructure,” Singh added.
Despite these hurdles, the industry is responding. Cybersecurity is receiving the highest level of planned investment, with 87% of firms committing to moderate or large investments this year. “Firms have clearly made cybersecurity a strategic imperative,” said Singh.
As financial institutions ramp up their digital efforts, the need to maintain balance between speed and security becomes even more important. Singh advised that firms must “get their basics right”.
One of the most foundational areas is data harmonization: “40% of firms still struggle with data quality issues,” she said.
“Harmonizing data across systems enables straight-through processing, reduces vulnerabilities, and ensures strong governance,” she added.
According to Singh, addressing legacy technology is another essential step. “Upgrading outdated platforms allows firms to scale transformation while maintaining data privacy and resilience,” she said.
Singh also emphasized the need for regular resilience testing and regulatory compliance, particularly in light of frameworks like the EU’s Digital Operational Resilience Act (DORA).
Even with these insights, execution remains a major challenge. Singh sees a significant gap between strategic intent and operational reality. “Replacing legacy systems is hard. Many firms underestimate the complexity,” she said.
“According to our study, 47% of firms are still dealing with data silos, which makes transformation even more difficult,” she added.
Another issue is the temptation to start with technology instead of business priorities.
“If transformation is driven by tech rather than a business need, it lacks a north star. You need clear business goals to guide your approach,” Singh said.
Without a clearly defined target state and a practical roadmap to reach it, transformation efforts can easily stall.
When evaluating technologies or strategies for modernization, Singh recommended starting with business priorities and growth targets. “First, know where you want to go. Then, take a clear-eyed look at where you are,” she advised.
This means analyzing existing tech stacks, identifying pain points, and understanding the firm’s unique risk profile. From there, firms can define a realistic target state and determine the incremental steps required to reach it.
“Think through where you need external expertise and where you can build on internal strengths,” she said. “The journey needs to be both strategic and grounded in reality.”
Interoperability and system connectivity play a pivotal role in enabling secure, scalable digital transformation. Singh explained that these capabilities are critical in complex trading environments.
“They allow different systems to work together, which is essential for seamless data flow, operational efficiency, and regulatory compliance,” she said.
Interoperability helps eliminate data silos and provides a unified view across platforms, improving decision-making and enhancing cybersecurity.
“System connectivity also supports scalability—firms can adapt more easily to regulatory changes like the move to T+1 settlement cycles,” she said.
Looking ahead, Singh believes several emerging technologies will shape the way firms approach data security and agility.
“AI, machine learning, Generative AI, and Distributed Ledger Technologies will have the biggest impact,” she said.
This year alone, 80% of firms are investing in AI, 72% in GenAI, and 71% in DLT. These technologies promise both enhanced security and operational efficiency.
“AI and ML offer advanced analytics and predictive capabilities, while DLT provides secure, transparent data structures,” Singh noted.
“And GenAI will drive agility by automating processes and enabling real-time decision-making. In fact, 68% of firms believe GenAI will have the greatest impact on employee productivity,” she said.
As financial institutions navigate this rapidly evolving landscape, Singh underscored the importance of aligning innovation with foundational resilience.
“Cybersecurity, data integrity, and operational resilience must move in lockstep with transformation. Only then can firms truly unlock the value of their digital investments,” she concluded.
