(April 8): Digital finance and tokenised assets are slated to become a core part of the world’s financial system, but most businesses don’t know what impact that will have on their operations, according to a survey by HSBC Holdings Plc.
About 90% of the 3,500 corporate leaders and investors surveyed by the British bank assume that the adoption of digital banking will speed up over the next five years. But less than half — 47% — said they didn’t know how their businesses would adapt, the bank said in its survey.
“Momentum is not matched by readiness,” HSBC wrote in a report summarising the survey, which was conducted ahead of its annual Global Investment Summit next week in Hong Kong. The bank said that fewer than four in 10 of those it surveyed were “actively implementing use cases” for digital finance.
More firms are investing heavily in digital payments, cryptocurrency, stablecoins and mobile banking to modernise systems, lower costs and take up market share. Advancements in artificial intelligence have accelerated that effort as firms look for ways to adopt such technology.
For investors, almost half of those surveyed are reworking client portfolios to increase exposure to AI and technology, according to the report.
Private capital is expected to exert the most influence over worldwide capital flows by 2035, according to the HSBC survey, with 33% of respondents saying it would be a dominant force in markets within a decade. This compares to a fifth who said public markets would exert the biggest influence.
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That expectation reflects “demand for longer-term and more flexible funding,” according to the report.
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