Broadridge Whitepaper Highlights the Drive for Efficiency Amongst Nordic Capital Markets Firms

Rhea-AI Summary

Broadridge Financial Solutions, Inc. collaborates with Firebrand Research to release a whitepaper on 'Capital Markets Trends in the Nordics,' focusing on efficiency, modernization, and ESG topics. Nordic firms are adapting to market structure changes, emphasizing stakeholder engagement, attracting foreign investors, improving efficiency, and exploring AI technologies.

Insights

Market Research Analyst

The whitepaper released by Broadridge Financial Solutions in partnership with Firebrand Research signifies a strategic evaluation of the Nordic capital markets. The focus on efficiency improvement, legacy infrastructure transitions and modernization is indicative of a broader trend within global finance towards technological advancement and operational streamlining. Particularly, the emphasis on ESG topics aligns with the increasing investor demand for sustainable and responsible investment opportunities.

This trend towards standardization and harmonization with the European Union is expected to have a positive effect on the Nordic region's ability to attract foreign investment by reducing the complexity and perceived risk associated with market entry. The potential mobilization of trapped liquidity could lead to a more dynamic capital market, with broader implications for the region's economic growth and the performance of Nordic firms on the global stage.

Financial Technology Analyst

The report's insights on the Nordic region's cautious yet growing interest in next-generation technologies, such as AI, compared to their slower adoption of distributed ledger technologies, suggest a calculated approach to technological investment. The potential for AI to drive new efficiencies could lead to transformative changes in the operational models of financial institutions. Moreover, the differentiation in technology adoption rates indicates a region that is carefully selecting tools that align with its unique market dynamics and regulatory environment.

For stakeholders, this could mean a gradual shift towards more innovative financial services and products, as well as improved risk management and decision-making processes. However, this also suggests that the region's institutions may face a learning curve and initial investment costs associated with integrating these technologies.

ESG Investment Analyst

The Nordic region's ongoing focus on establishing ESG standards, especially in the realm of shareholder engagement, presents a unique value proposition for investors interested in responsible investing. The whitepaper's findings indicate that Nordic firms are leveraging their strengths in environmental and governance issues to further differentiate themselves in the global market.

As ESG criteria become increasingly important in investment decision-making, the Nordic approach to ESG could potentially lead to a competitive advantage, attracting investors who prioritize sustainability and ethical governance. However, it is crucial for these firms to maintain transparency and continue developing robust ESG reporting mechanisms to meet investor expectations and comply with evolving regulations.

NEW YORK and LONDON and STOCKHOLM, Feb. 27, 2024 /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader, today announced the launch of a new whitepaper in collaboration with Firebrand Research, highlighting the latest trends in capital markets across the Nordic region. The research, 'Capital Markets Trends in the Nordics: Harmonising While Retaining Local Expertise,' reveals an increasing focus on improving efficiency, transitioning away from legacy infrastructure, and modernizing systems to support future market requirements.

"This report delivers critical insight into how Nordic firms are planning to stay competitive in the face of market structure standardization and modernization. It also highlights an increased focus on shareholder support and corporate governance engagement in response to the revised Shareholder Rights Directive (SRD II), as well as a growing regional focus on environmental, social and governance (ESG) topics," said Mike Sleightholme, President of Broadridge International. "Additionally, the report showcases how attitudes towards next generation technologies differ. For example, we are seeing that Nordic financial institutions are being slower to experiment with distributed ledger technologies than their continental European counterparts, but there is a growing interest in the potential of AI and how it can be leveraged to drive new efficiencies."

"There are a lot of interesting and important lessons to be learned from the Nordic markets' recent experiences with market infrastructure change and their ongoing focus on establishing ESG standards, especially those related to shareholder engagement," said Virginie O'Shea, Founder of Firebrand Research. "The region is focused on retaining attractive local differentiators from a tax or capital raising perspective but also introducing greater standardization and harmonization with the EU to industrialize where it makes sense."

The whitepaper found that Nordic firms working across capital markets are:

• Coping with market infrastructure changes and are keen to ensure that they keep pace with these changes and retain their competitive edge
• Focusing on stakeholder engagement, and are particularly emphasizing environmental and governance topics, furthering the region's differentiation strength in these areas
• Looking to attract foreign investors through greater standardization and harmonization with the EU, mobilising trapped liquidity and attracting greater international investment
• Focusing on improving efficiency across their operation to reduce costs and risks
• Evaluating next-generation technologies such as Artificial Intelligence (AI) to generate new revenue streams

To download the full report, click here.

About Firebrand Research

Firebrand Research are experts in providing research and advisory services to firms across the capital markets spectrum. From fintech investments to business case building, they have the skills to help you get the job done.

For more information, please visit fintechfirebrand.com

About Broadridge

Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over $6 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. We deliver technology-driven solutions that drive business transformation for banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. Our technology and operations platforms underpin the daily trading of more than $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries.

For more information about us, please visit https://www.broadridge.com/.

Media Contact:
Gregg Rosenberg
Global Head of Corporate Communications
Gregg.Rosenberg@broadridge.com 

 

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SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is the focus of the whitepaper released by Broadridge Financial Solutions, Inc. and Firebrand Research?

The whitepaper focuses on 'Capital Markets Trends in the Nordics,' highlighting efficiency, modernization, and ESG topics.

What are Nordic firms coping with according to the whitepaper?

Nordic firms are coping with market infrastructure changes and striving to maintain their competitive edge.

What are Nordic firms emphasizing in terms of stakeholder engagement based on the whitepaper?

Nordic firms are particularly emphasizing environmental and governance topics in stakeholder engagement.

How are Nordic firms looking to attract foreign investors as per the whitepaper?

Nordic firms aim to attract foreign investors through greater standardization and harmonization with the EU.

What technologies are Nordic firms evaluating for generating new revenue streams according to the whitepaper?

Nordic firms are evaluating Artificial Intelligence (AI) technologies for generating new revenue streams.