Painting all FinTechs with the Same Brush is a Lost Opportunity
Recent FinTech discussions are highlighting big differences in the role of financial technology. FinTech was originally viewed as a disruptor and traditional wealth management firms viewed these players as either competitors or acquisition targets. The robo-advisor technology received the most press and attention because this technology is easy to understand for consumers. These discussions are beginning to shift. At the recent OSC Dialogue conference, FinTech disruptors were on the agenda but took a back seat to Blockchain and DLT – technologies that will not disrupt current business models but will make these business models stronger. The opportunity to dramatically streamline back office processes is a huge opportunity for the industry – and FinTech will be an enabler not a disruptor. Another recent conference, hosted by the Portfolio Management Association of Canada also focused on the same issue – FinTech as an enabler. According to one of the panelists, “It’s an ‘and,’ not an ‘or’ [regarding the use of FinTech]. A recent IE article provides a great summary of this conference.
At InvestorCOM, we couldn’t agree more. Our FinTech solutions are used by our clients to improve their existing business models by improving productivity, converting analog and paper-based compliance processes to fully digital workflows and driving cost out of their compliance processing. There will be technology disruptors in every industry, but painting all FinTechs with the disruption brush may delay capturing these important benefits.