Broadridge Study Reveals Potential for Improved Communication Understanding
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy BR?
Source: PRnewswire
- Understanding Improvement: Broadridge's research indicates that redesigning financial communications using behavioral science principles can more than double customer comprehension, highlighting the negative impact of legacy FCA disclosure rules that may increase customer harm risks.
- Research Context: In a randomized controlled trial involving 1,500 UK savings customers, it was found that customers consistently overestimate their understanding of financial communications, underscoring the challenges financial firms face in meeting Consumer Duty requirements.
- Modernizing Communication Management: The report recommends that financial institutions not only align with regulatory expectations but also modernize communication management to enhance customer relationships and gain competitive advantages, particularly for those who act early.
- Call for Industry Action: The report calls for regulatory and industry action to address the barriers posed by legacy rules, enabling more effective communication of key messages and improving customer experiences and business performance.
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Analyst Views on BR
Wall Street analysts forecast BR stock price to rise
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 160.640
Low
240.00
Averages
267.80
High
305.00
Current: 160.640
Low
240.00
Averages
267.80
High
305.00
About BR
Broadridge Financial Solutions, Inc. is a global technology company with specialization and transformative technology, helping clients and the financial services industry operate, innovate, and grow. Its segments include Investor Communication Solutions (ICS) and Global Technology and Operations (GTO). Its ICS segment provides Regulatory Solutions, Data-Driven Fund Solutions, Corporate Issuer Solutions, and Customer Communications Solutions. The ICS business involves the processing and distribution of proxy materials to investors in equity securities and mutual funds, and the facilitation of related vote processing. The Global Technology and Operations business offers mission-critical, scale infrastructure to the global financial markets. Its component-based platform automates the front-to-back transaction lifecycle of equity, mutual funds, fixed income, and foreign exchange and exchange-traded derivatives. It also offers cross-border fund distribution and regulatory services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadridge Study Reveals Potential for Improved Communication Understanding
- Understanding Improvement: Broadridge's research indicates that redesigning financial communications using behavioral science principles can more than double customer comprehension, highlighting the negative impact of legacy FCA disclosure rules that may increase customer harm risks.
- Research Context: In a randomized controlled trial involving 1,500 UK savings customers, it was found that customers consistently overestimate their understanding of financial communications, underscoring the challenges financial firms face in meeting Consumer Duty requirements.
- Modernizing Communication Management: The report recommends that financial institutions not only align with regulatory expectations but also modernize communication management to enhance customer relationships and gain competitive advantages, particularly for those who act early.
- Call for Industry Action: The report calls for regulatory and industry action to address the barriers posed by legacy rules, enabling more effective communication of key messages and improving customer experiences and business performance.
See More
Broadridge Study Reveals Need for Communication Redesign
- Understanding Improvement: Broadridge's research indicates that redesigned financial communications can more than double customer comprehension, particularly by applying behavioral science principles and personalized content, thereby significantly reducing potential customer harm.
- Significant Research Findings: In a randomized controlled trial involving 1,500 UK savings customers, only 15% of participants could correctly answer key questions from the original communication, while the reimagined version more than doubled comprehension, highlighting the negative impact of legacy rules on customer understanding.
- Compliance and Communication Challenges: Senior communications leaders across global and UK banks report feeling caught between compliance demands and delivering clear communications, with many citing traditional rules and complex governance structures as barriers to meaningful progress.
- Call for Industry Action: The report recommends that financial institutions continue to advocate for regulatory reform, apply effective behavioral frameworks, and invest in a strategic approach to communication management to enhance customer experience and trust while lowering operational costs.
See More
Broadridge Launches Central Risk and Liquidity Optimization Solution
- Solution Launch: Broadridge's Central Risk and Liquidity Optimization Solution aims to enhance capital efficiency and client value by integrating trade execution, risk, and liquidity management through a unified platform for financial institutions.
- Technology Integration: The solution combines smart order routing, multi-asset market making, internalization, and automated hedging, significantly simplifying operational workflows and enhancing real-time risk management capabilities to meet the complexities of today's financial markets.
- Market Demand Response: In response to challenges of fragmented risk and capital constraints, Broadridge's solution helps firms internalize more client flow by coordinating execution and pricing, thereby lowering trading costs and driving revenue growth.
- Strategic Significance: This initiative marks a significant milestone in Broadridge's vision for a global multi-asset trading infrastructure, designed to support the evolving needs of sell-side firms and enhance their market competitiveness.
See More
Broadridge Launches Central Risk and Liquidity Optimization Solution
- Solution Launch: Broadridge's Central Risk and Liquidity Optimization Solution aims to integrate trade execution, risk management, and liquidity management through a unified platform, enhancing capital efficiency and client value for financial institutions.
- Technological Edge: Built on Broadridge's market-leading front-office technology, the solution combines smart order routing, multi-asset market making, and automated hedging, significantly improving trading efficiency and risk management capabilities.
- Market Demand Response: In response to challenges of fragmented risk and capital constraints, the platform helps firms internalize more client flow by centralizing risk in real-time and simplifying operations, thereby lowering trading costs and increasing revenue.
- Strategic Implications: Broadridge's solution not only addresses the fragmentation issues of traditional systems but also lays the groundwork for future multi-asset trading infrastructure, showcasing the company's leadership in the fintech sector.
See More
HQLAX Secures Strategic Investment from Broadridge and Digital Asset
- Strategic Investment Background: HQLAX has secured strategic minority investments from Broadridge and Digital Asset in its Series C-1 funding round, with the capital aimed at evolving its technology platform and collaborating with Broadridge's Distributed Ledger Repo platform, marking a significant milestone in building critical market infrastructure for digital collateral mobility.
- Technology Platform Upgrade: The investment will support HQLAX's planned migration to the Canton Network, leveraging complementary capabilities to drive regulated market use cases across the global securities finance and repo industry, thereby enhancing its competitive edge in financial markets.
- Growing Market Demand: Broadridge's Global Head of Digital Innovation noted that HQLAX's solution effectively addresses critical inefficiencies in collateral mobility, and as demand for scalable, interoperable digital infrastructure increases, this investment will accelerate the adoption of digital assets and collateral mobility.
- Board Changes: As part of the transaction, representatives from Broadridge and Digital Asset will join HQLAX's board, with the board appointments and migration to the Canton Network subject to regulatory approval from the Commission de Surveillance du Secteur Financier, further strengthening HQLAX's market position.
See More
Broadridge Empowers Tavira Financial's Growth with Integrated Solutions
- Technology Partnership Upgrade: Tavira Financial has selected Broadridge's High Touch Order Management System (OMS) and middle office solutions to optimize trading workflows and enhance global market connectivity, thereby supporting the expansion of its agency brokerage platform.
- Efficiency Improvement: With Broadridge's integrated solutions, Tavira can manage the entire process from trade inception to post-trade processing, which is expected to significantly reduce operational complexity and enhance trade volume handling capabilities.
- Flexible Architecture Advantage: Broadridge's horizontally scalable architecture allows Tavira to maintain flexibility across execution styles and asset classes, ensuring that it is not constrained by operational or performance limitations in the face of growing trade demands.
- Market Demand Response: Tavira's decision highlights the increasing demand among brokerage firms for robust integrated trading infrastructure, with Broadridge's stability and advanced functionalities poised to support its growth in a competitive market.
See More
Broadridge Study Reveals Potential for Improved Communication Understanding
- Understanding Improvement: Broadridge's research indicates that redesigning financial communications using behavioral science principles can more than double customer comprehension, highlighting the negative impact of legacy FCA disclosure rules that may increase customer harm risks.
- Research Context: In a randomized controlled trial involving 1,500 UK savings customers, it was found that customers consistently overestimate their understanding of financial communications, underscoring the challenges financial firms face in meeting Consumer Duty requirements.
- Modernizing Communication Management: The report recommends that financial institutions not only align with regulatory expectations but also modernize communication management to enhance customer relationships and gain competitive advantages, particularly for those who act early.
- Call for Industry Action: The report calls for regulatory and industry action to address the barriers posed by legacy rules, enabling more effective communication of key messages and improving customer experiences and business performance.
See More
Broadridge Study Reveals Need for Communication Redesign
- Understanding Improvement: Broadridge's research indicates that redesigned financial communications can more than double customer comprehension, particularly by applying behavioral science principles and personalized content, thereby significantly reducing potential customer harm.
- Significant Research Findings: In a randomized controlled trial involving 1,500 UK savings customers, only 15% of participants could correctly answer key questions from the original communication, while the reimagined version more than doubled comprehension, highlighting the negative impact of legacy rules on customer understanding.
- Compliance and Communication Challenges: Senior communications leaders across global and UK banks report feeling caught between compliance demands and delivering clear communications, with many citing traditional rules and complex governance structures as barriers to meaningful progress.
- Call for Industry Action: The report recommends that financial institutions continue to advocate for regulatory reform, apply effective behavioral frameworks, and invest in a strategic approach to communication management to enhance customer experience and trust while lowering operational costs.
See More
Broadridge Launches Central Risk and Liquidity Optimization Solution
- Solution Launch: Broadridge's Central Risk and Liquidity Optimization Solution aims to enhance capital efficiency and client value by integrating trade execution, risk, and liquidity management through a unified platform for financial institutions.
- Technology Integration: The solution combines smart order routing, multi-asset market making, internalization, and automated hedging, significantly simplifying operational workflows and enhancing real-time risk management capabilities to meet the complexities of today's financial markets.
- Market Demand Response: In response to challenges of fragmented risk and capital constraints, Broadridge's solution helps firms internalize more client flow by coordinating execution and pricing, thereby lowering trading costs and driving revenue growth.
- Strategic Significance: This initiative marks a significant milestone in Broadridge's vision for a global multi-asset trading infrastructure, designed to support the evolving needs of sell-side firms and enhance their market competitiveness.
See More
Broadridge Launches Central Risk and Liquidity Optimization Solution
- Solution Launch: Broadridge's Central Risk and Liquidity Optimization Solution aims to integrate trade execution, risk management, and liquidity management through a unified platform, enhancing capital efficiency and client value for financial institutions.
- Technological Edge: Built on Broadridge's market-leading front-office technology, the solution combines smart order routing, multi-asset market making, and automated hedging, significantly improving trading efficiency and risk management capabilities.
- Market Demand Response: In response to challenges of fragmented risk and capital constraints, the platform helps firms internalize more client flow by centralizing risk in real-time and simplifying operations, thereby lowering trading costs and increasing revenue.
- Strategic Implications: Broadridge's solution not only addresses the fragmentation issues of traditional systems but also lays the groundwork for future multi-asset trading infrastructure, showcasing the company's leadership in the fintech sector.
See More
HQLAX Secures Strategic Investment from Broadridge and Digital Asset
- Strategic Investment Background: HQLAX has secured strategic minority investments from Broadridge and Digital Asset in its Series C-1 funding round, with the capital aimed at evolving its technology platform and collaborating with Broadridge's Distributed Ledger Repo platform, marking a significant milestone in building critical market infrastructure for digital collateral mobility.
- Technology Platform Upgrade: The investment will support HQLAX's planned migration to the Canton Network, leveraging complementary capabilities to drive regulated market use cases across the global securities finance and repo industry, thereby enhancing its competitive edge in financial markets.
- Growing Market Demand: Broadridge's Global Head of Digital Innovation noted that HQLAX's solution effectively addresses critical inefficiencies in collateral mobility, and as demand for scalable, interoperable digital infrastructure increases, this investment will accelerate the adoption of digital assets and collateral mobility.
- Board Changes: As part of the transaction, representatives from Broadridge and Digital Asset will join HQLAX's board, with the board appointments and migration to the Canton Network subject to regulatory approval from the Commission de Surveillance du Secteur Financier, further strengthening HQLAX's market position.
See More
Broadridge Empowers Tavira Financial's Growth with Integrated Solutions
- Technology Partnership Upgrade: Tavira Financial has selected Broadridge's High Touch Order Management System (OMS) and middle office solutions to optimize trading workflows and enhance global market connectivity, thereby supporting the expansion of its agency brokerage platform.
- Efficiency Improvement: With Broadridge's integrated solutions, Tavira can manage the entire process from trade inception to post-trade processing, which is expected to significantly reduce operational complexity and enhance trade volume handling capabilities.
- Flexible Architecture Advantage: Broadridge's horizontally scalable architecture allows Tavira to maintain flexibility across execution styles and asset classes, ensuring that it is not constrained by operational or performance limitations in the face of growing trade demands.
- Market Demand Response: Tavira's decision highlights the increasing demand among brokerage firms for robust integrated trading infrastructure, with Broadridge's stability and advanced functionalities poised to support its growth in a competitive market.
See More
