Technology combined with regulation is a force for good that can transform incumbents, promote competition and create more transparency, Sybenetix CEO Taras Chaban told the Aberdeen Asset Management 2016 conference.
Speaking alongside leading industry, political and economic commentators, Chaban participated in the ‘FinTech phenomenon’ panel. This discussed how FinTech is delivering better business models in collaboration with incumbents, VC’s and regulators.
The panel agreed that collaboration, rather than competition, is the next phase of empowerment for FinTech. Chaban made the comparison with the pharmaceutical industry, where incumbents have stayed ahead of the market through collaboration with small biotech firms. He noted that while banks and asset managers have access to innovative technology, smaller tech firms can benefit from the brand of a larger company.
At the event, Chaban outlined how collaboration is particularly transformative in regulation. “Regulation done badly can do a disservice by reducing consumer choice and competition. Technology with regulation can be a force for good. It can allow smaller players to emerge and do their business in a more cost effective way. And it can drive transparency with larger players.”
He cited the large amounts of data required under MiFID II as an opportunity for business improvement. “That data, if put to the right use, can actually change the way businesses operate. It shouldn’t be looked at as a cost. It should be looked at as a return on investment. An investment in my understanding of how my business operates, how my fund managers and traders do their jobs.”
The application of advanced analytics and artificial intelligence is the key to delivering business value from these large regulatory data sets. As the panel discussed further FinTech enablement, Chaban explained that we are only beginning to understand intelligence and how humans learn. The next step will be to develop specialised machines that can crunch very large data sets and help humans do their jobs better. “It’s more about man plus machine, rather than machine.”
A summary of The Fintech phenomenon panel discussion is available at the Aberdeen Asset Management website here.