Broadridge CEO on Digitization and Democratization of Investing
Dec 8, 2023
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Tim Gokey, CEO of Broadridge, discusses the digitization and democratization of investing. He talks about Broadridge's role in powering financial services, their services and revenue generation, and the technological challenges in trade settlement. He also shares personal experiences during a stock market crash and highlights the importance of technology in the financial industry.
Broadridge provides critical infrastructure that supports governance, capital markets, and wealth management, connecting market participants and supporting the democratization of investing.
Broadridge recognizes the trend of democratization of investing, facilitating communication with retail shareholders and offering AI tools for enhanced products.
Deep dives
Broadridge: Powering Financial Infrastructure and Services
Broadridge is a global fintech company that plays a crucial role in the financial services industry. They provide critical infrastructure that supports governance, capital markets, and wealth management. Their unique network connects market participants, including public companies, broker dealers, and investors, enabling corporate governance and supporting the democratization of investing. Broadridge offers a range of services, from communication platforms for corporate governance to technology platforms for capital markets and wealth management firms. They are investing in AI to enhance their products and provide greater efficiency, such as pre-trade analytics and generative AI. They are also adapting to industry changes, like the shift to T+1 settlement, and helping their clients navigate technological upgrades.
The Democratization of Investing and Engaging Retail Shareholders
Broadridge recognizes the ongoing trend of the democratization of investing, with lower trading costs and a wider range of investment products. They support this trend by helping companies engage with their retail shareholders and providing digital tools for wealth management firms. The percentage of US adults owning at least one share has increased, and Broadridge facilitates communication and engagement with retail shareholders. They are introducing AI tools, such as generative AI, to enhance their products and offer advantages to companies with unique data.
From Technology Nightmare to Technological Transformation
Broadridge has experienced the impact of technology on the financial industry firsthand. The shift from T+7 to T+1 settlement, and potential future transition to T+0, presents technological challenges that they are prepared to handle. They are working closely with their clients to facilitate these changes and ensure a smooth transition. Broadridge emphasizes the importance of technology in streamlining processes, improving efficiency, and avoiding the inefficiencies and difficulties associated with manual paper-based systems. The lessons learned from past market crashes, like the one in 1987, have underscored the need for technology in running a modern financial business.
Broadridge CEO Tim Gokey discusses fintech that powers investing, corporate governance and communications. Hosts: Paul Sweeney and Jess Menton. Producer: Paul Brennan.