Yuri Bender from Professional Wealth Management reports on the FinTech being used by Asset Management to changes its business model.
Taras Chaban is interviewed after speaking at FundForum International on how the interaction between digital and humans in asset management cannot only automate process, but drive more effective critical decision making leveraging the data used for compliance and market surveillance.
“Asset managers need to work with fintech companies rather than putting them out of business,” says Taras Chaban, CEO of Sybenetix. “They can learn a lot from fintech companies,” especially in terms of automation and improving efficiency.
He also feels technology can help teach portfolio managers how to better oversee clients’ portfolios. “Investment management is not an art, it is a skill which can be learned. Critical decision-making is important in other industries too, including the medical industry and aviation, where people have used technology to reduce mistakes and save lives, and financial services can learn from these.” In particular, regulation should be viewed as an opportunity rather than a hindrance, believes Mr Chaban.
“Many firms are talking to potential clients, gathering information on them and they see this as a cost, because the regulator is forcing them to collect data. But there is a massive opportunity then to take that data and use it. For us to help our clients, we really need to understand this data.”
Analysis of such data, using specialist software, can help draw up patterns of how portfolio managers trade and show them how to avoid errors. “Using this data, we can build probabilistic models of what is likely to happen going forward, so it is predictive” he says.
“This is all about how human beings can use technology to develop their skills further, helping them go from good to great. It’s not about how robots can replace humans.”
You can read the full article at Professional Wealth Manager