ETF Industry Faces Opportunities, Challenges with Booming Fintech

It’s not meaningful or useful to describe investors as “fed up” with the status quo….folk weren’t “fed up” with taxes it’s just that app based ride sharing services offered a new level of service – one thing is clear there is no going back – there are few examples of technology improvements accepted by consumers that don’t move forward so this is a one way street.

ETF Trends: Where can fintech make greater inroads?

Nigel Brashaw: Operations, investment performance and distribution.

ETF Trends: Will financial companies, advisors have to make the leap into fintech to stay relevant?

Nigel Brashaw: It depends – over time certainly yes. If you are in the typewriter manufacturing business that’s a small market today because other products have taken over. However there is a period of time of coexistence – how long this period will be is open to interpretation and debate – my view is that technological change (and consumer expectations) are accelerating so if you are choosing to stand still and watch the change from the sidelines your competitors and investors will become increasingly distant.

ETF Trends: Will fintech replace human advisors?

Nigel Brashaw: To answer this you have to consider where computers have an advantage over humans – analysis. computation and other areas – however there will be a role for humans for some time – human creativity and ability to connect with others is not easily replicated so technology augments humans for now. Probably no different to other industries the amount of tasks automated and delivered digitally will increase with time.

For more information on the ETF industry, visit our current affairs category.