Northern Trust (NTRS) Morgan Stanley US Financials Conference 2026 summary

Strategic technology priorities and investment themes

• Focused on risk and resiliency, especially after major cyber events in 2020–2021, with elevated tech spending since then.

• Modernization and cloud migration remain ongoing, with under half of applications currently cloud-based and aspirations to increase this.

• Shift in tech investment from double-digit growth to targeting single digits in 2024, aiming for 4–7% sustained growth by 2027–2028.

• Increasing emphasis on emerging technologies, particularly AI and quantum, with AI investment tripling this year and expected to double or triple again next year.

• Flexible financial model enables adaptation to both economic and non-financial adverse conditions.

Cybersecurity and AI integration

• Elevated investments in cybersecurity and vulnerability management, with robust scanning and remediation programs in place.

• AI is both a tool for productivity and a source of new cyber risks, requiring proactive and rapid remediation as exploitation windows shrink from months to hours.

• Automation and strategic partnerships are accelerating vulnerability discovery and remediation, aiming for machine-speed fixes.

• AI's top impact is in IT, boosting developer productivity and code quality, with broader adoption expected across business lines.

• Cybersecurity remains a critical focus, but AI-driven opportunities for growth and efficiency are being energetically pursued.

Business transformation and operational leverage

• Tech investment is shifting back toward business-driven initiatives, with over 50% now focused on growth rather than just resiliency.

• Operating leverage is maintained by balancing productivity gains with continued investment, allowing reinvestment in growth and technology.

• Tokenomics and AI operational costs are influencing project prioritization, with some initiatives paused if automation is less cost-effective than manual processes.

• Most AI deployments are currently assistive, enhancing employee capabilities rather than replacing staff.