Intertrust understands that technology, mostly driven by artificial intelligence (88%), blockchain (47%), Internet of Things (29%), robotics (18%) and Virtual Reality (15%), among others, will disrupt the financial services businesses, according to latest research carried out in April 2019.
Intertrust, a global leader in expert administrative services to clients operating and investing in the international business environment, recently hosted an event in New York with clients to discuss findings of its latest survey focused on disruptive technologies. In late 2018, the company surveyed more than 500 market participants, and found that technology is on pace to disrupt the financial services industry. They redistributed the survey to the industry in April 2019 where they gathered 54 responses to highlight more recent findings, specific to the US market.
Stephanie Miller, Intertrust’s CEO, and James Ferguson, Head of the Americas, gathered in New York with clients and friends from top banks, accounting and legal firms, fund managers and administrators to discuss how the sector is being impacted by new technologies. Intertrust has been launching surveys and conducting regular meetings with financial services clients to further identify industry opportunities as a result of new and disrupting technologies.
The overall consensus in the New York meeting is that technology is and will further impact the industry. Artificial Intelligence (AI) and blockchain are redefining the rules of engagement. Administrative processes at banks, funds, legal and accounting firms, will tend to embrace technology, if they haven’t already done so to some degree to stay relevant. Advancements will enable offices to automate and improve certain tasks, directly benefitting clients through faster processing time, accuracy and, to a certain extent, lower costs.
“We understand the changes in the industry. As enablers and gatekeepers to our clients, we provide all types of financial services solutions. We need to be the Uber alternative to the yellow medallions in New York, providing value added solutions driven by technology,” stated Stephanie Miller. Intertrust’s CEO, added: “My duty is to facilitate solutions to my clients so they, in turn, stay relevant, ahead of the learning curve and in front of their own clients.”
Other facts disclosed during the meeting was that AI will impact the industry through disintermediation as seen in predictive analysts, data processing, key searches and metadata. “The new technology supported by machine learning will only continue to get better,” commented Miller.
James Ferguson, Head of Americas at Intertrust, also added: “The pace of innovation can already be seen with chatbots, which are already impacting intermediation. Chatbots have come a long way, and due to recent AI advancements, are now able to deliver a higher level of sophistication and personalization during interactions with customers.”
Intertrust seeks to be ahead of a constantly changing industry. These changes are expected to bring more challenges to the financial services industry, such as investments to apply new technologies, additional training for current workforce, data security, industry regulations, cross-border and cross-industry agreements on custody to digital civil rights.