“While many of the economic factors troubling financial executives a year ago – from rising interest rates to elevated geopolitical unrest – persist today, the rate of technological progress witnessed over the last 12 months poses a tremendous growth opportunity. Market participants are well aware of this, and most are taking meaningful steps to capitalize on it.”

A recent study by SIX, the operator of Swiss and Spanish stock exchanges, reveals a significant increase in optimism among senior finance executives regarding the economic outlook and their firms’ growth prospects.

According to the Future of Finance Study, 77% of global senior finance executives expect the economic environment to improve over the next year, a notable rise from 66% in 2022. This survey included opinions from executives at 343 financial institutions worldwide.

The study indicates a growing confidence in companies’ growth potential over the next three years. A substantial 64% of businesses globally feel strongly positioned for significant growth, up from 51% last year. Companies in Switzerland, Singapore, and the U.S. are particularly bullish, with 72%, 71%, and 70% of respondents, respectively, expressing strong growth expectations.

Optimism is not limited to a single sector within the financial industry. Investment banking leads in positivity, with 74% of respondents feeling well positioned for growth. The wealth management and asset servicing sectors also exhibit increased optimism compared to the previous year.

AI, Data & Analytics, and Alternatives

The study highlights artificial intelligence (AI) implementation as the most compelling growth opportunity, with 38% of global respondents identifying it as a key driver. Close behind is the enhancement of high-quality data and analytics capabilities, chosen by 35% of respondents. The asset management sector shows significant interest in alternative asset classes, with 41% viewing them as a major growth opportunity.

Despite the positive outlook, respondents acknowledge potential headwinds. The top concerns include regulatory changes, increasing systemic global financial risks, and geopolitical uncertainties. These factors could pose challenges to the anticipated growth.

Jos Dijsselhof, CEO of SIX, notes that while economic challenges persist, the rapid technological progress in the past year presents significant growth opportunities. Success in capitalizing on these opportunities will depend on firms’ ability to integrate emerging technologies and adapt to regulatory changes and evolving market infrastructures.

“While many of the economic factors troubling financial executives a year ago – from rising interest rates to elevated geopolitical unrest – persist today, the rate of technological progress witnessed over the last 12 months poses a tremendous growth opportunity. Market participants are well aware of this, and most are taking meaningful steps to capitalize on it. Whether they are successful in doing so rests on several factors, from how effectively they can integrate emerging technologies, to the rate at which market regulators and financial market infrastructures can adapt to the swiftly evolving market environment.”