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Broadridge's Mission to Enhance Financial Literacy in Ireland

Broadridge Financial Solutions, Inc. (NYSE: BR) is embarking on an innovative initiative aimed at improving financial literacy across Ireland. This project, made possible with the support of IDA Ireland, seeks to leverage artificial intelligence (AI) to simplify the language used in financial disclosures. The ultimate aim is to make investment products more comprehensible and accessible for retail investors in Ireland.

Denis Curran, who heads International Financial Services at IDA Ireland, expresses excitement about this partnership. He notes, "Ireland is a leading international centre for innovation in financial technology. We are grateful to support Broadridge in its mission to enhance financial literacy through the power of artificial intelligence. I wish the team at Broadridge every success with this innovative project."

The collaboration takes on a significant challenge within Ireland's financial services industry. With over €5 trillion in fund assets, Ireland stands as Europe's ETF powerhouse. However, participation from retail investors remains unexpectedly low. According to research conducted by the European Commission and reported in its 2023 Eurobarometer Survey, only 18% of EU citizens showcase high financial literacy. This lack of understanding is often attributed to overly complex, jargon-laden disclosures that deter average investors.

Stephen Johnston, Senior Country Officer at Broadridge in Ireland, remarked on the importance of this initiative, stating, "Our partnership positions Broadridge at the center of a national effort to utilize technology in making sophisticated investment products genuinely accessible to retail investors. Our analysis of investment disclosures from the 50 largest UK asset managers revealed that nearly half are written at a level that would be challenging for most retail investors to digest. With approximately €14 trillion sitting idle in household savings accounts across Europe, and at a time when purchasing power is diminishing due to inflation, many savers remain unclear on how to maximize their investment potential."

The approach Broadridge is deploying involves applying AI to develop plain-language communications without sacrificing regulatory compliance and accuracy. This strategy is aimed at driving higher engagement among Irish savers, encouraging them to migrate from merely holding deposit accounts towards making long-term investments that could secure their financial futures.

The research project by Broadridge intends to evaluate the potential of AI-driven communications as a means to translate complex fund documentation into straightforward and digestible information. By making fund information easier to understand, everyday Irish savers will be empowered to make informed investment decisions. This initiative aligns with the broader efforts of the European Commission’s Financial Literacy Strategy as well as the UK's Financial Conduct Authority’s Consumer Composite Investment framework, both of which aim to present simplified, user-friendly disclosures.

Broadridge's team in Dublin is poised to support clients across Ireland's financial landscape, providing a range of technology and operational solutions. With a dedicated focus on local regulatory expertise, they collaborate with prominent global asset managers and fund administrators to navigate complex requirements and adapt to the shifting regulatory landscape necessitated by PRIIPs, MiFID, and other evolving frameworks.

As this study progresses, the findings will be shared with industry stakeholders and regulators, serving to inform best practices that will enhance the clarity of financial communications moving forward.

About Broadridge

Broadridge Financial Solutions (NYSE: BR) stands as a global leader in technology, offering trusted expertise and transformative platforms that assist clients and the financial services sector in operating, innovating, and growing. The firm powers investing, governance, and communications for its clients—driving operational resilience, enhancing business performance, and transforming investor experiences. Internationally, Broadridge processes and generates over 7 billion communications each year while facilitating the daily trading average of over $15 trillion in both tokenized and traditional securities. Operations span across 21 countries, employing a workforce of over 15,000 associates. For further insight, visit their website at Broadridge.com.