SIFMA Insights, Katie Kolchin, CFA Director of Research kkolchin@sifma.org, released a helpful and detailed report on The Evolution of the Fintech Narrative; Analyzing Opportunities in Capital Markets.
Fintech has been the defining attribute that has indicated whether a new security might sink or swim, but now it is time to review our history with the new age of data, and evaluate how we can improve our businesses, how we serve our customers, and evaluate next steps. Some interesting points Ms. Kolchin makes include:
it is necessary to adapt our fintech solutions on the user or customer side to customer expectations and competency levels. Fintech solutions should be user friendly, and should adapt quickly to changing user habits.
Many of the companies that are doing better than others now made key strategic IT investments 10 or more years ago. While throwing money at new fintech gimmicks is not advisable, it is important to invest heavily in IT development and cybersecurity in preparation for the next market cycle.
Capital markets firms are looking at the following approach to technology: update legacy systems, adopt new technologies, improve client experience, and invest in cybersecurity.
Ms. Kolchin has a thoroughly investigated SIFMA Insight on the growth and evolution of Fintech, and I encourage you to read it when you have some time. Keep in mind that fintech won’t necessarily just benefit your company, it may be the defining factor in how your business fares in the next 10 years.