A few weeks ago, I attended the NJTC FinTech conference and participated in the panel titled, “Innovation on Wall Street: Emerging Trends in Wealth Management.” The key topics of the discussion focused on the overall trends in the financial industry: challenging regulatory requirements, increased need for transparency, acceptance of mobility, the latest analytics and analytics tools, and integration (innovation).
Innovation in the financial industry continues to be a hot topic – especially the concept of disruptive innovation. Following the 2008 financial crisis, firms are focused on improving the image of financial institutions by trying to be more transparent and are forced to find innovative ways to do so. By increasing transparency, organizations are hoping to reverse the current perception that retail investors are at a disadvantage. In an effort to provide investors with more visibility into how their assets are managed, industry regulators are putting increased pressure on financial institutions to embrace regulation and promote transparency. However, the need to comply with looming industry regulations is significantly increasing firms overall costs and resources that would otherwise be dedicated to R&D. This leaves financial firms under resourced and therefore technology and innovation become less of a priority and, get pushed to the back burner, ultimately becoming less pertinent to senior level executives.
This current state of the industry has opened up a new arena for multiple technology firms and vendors to compete as the best solution provider. These solutions and products are designed to ultimately enable financial institutions to focus on automating key business processes, enabling them to focus on growing the business. For example, Square’s innovative technology changed the way people do business, as now almost anyone can accept credit card payments. Disruptive technology will continue to push the barriers in the marketplace, improving the overall experience for customers who want to transact with financial institutions. During the panel session I spoke specifically about how Scivantage is focused on doing the same across retail financial services through intelligent and actionable technology experiences.