A new trendspotting report from investor communications solutions firm Mediant examines the driving factors behind fintech investment, the influence of these new technologies, and the effect fintech has on investor communications.
The firm announced the release of its inaugural Trends in Fintech and Investor Communications report, which reveals key findings on the impact of fintech across the securities industry.
Notable findings of the survey include:
Over three-quarters of firms planned to invest more in fintech this year than in previous years
Only 3 percent of firms responding that they were investing less in 2017.
Respondents selected a variety of factors that drive fintech investment
Managing operational risk was selected as the top driver by 30 percent of respondents overall. Forty-four percent of broker-dealer participants said keeping up with new and changing regulations was their firm’s top investment driver.
Most impactful fintech innovations
When asked which fintech innovations will have the most impact on firms over the next two to five years, the most popular response from participants was machine learning and artificial intelligence.
The impact of blockchain and distributed ledger technologies will grow over the next five years
Thirteen percent of participants saying that blockchain is the most impactful technology over the short term, and 24 percent of participants saying it will have the most impact over the medium term.
Participants emphasized mobile and digital solutions as crucial for shareholder engagement
Forty-eight percent implementing digital services in order to enhance communications with investors.
“It is clear that the evolution of fintech is creating opportunities across the entire financial services industry, particularly in the area of investor communications,” said Stacey Robinson, chief technology officer of Mediant, in a news release. “The survey results in the 2017 Trends in Fintech and Investor Communications report show that in years to come, fintech will continue to be crucial for reducing costs, optimizing internal processes, maintaining regulatory compliance, and meeting investors’ needs.”
Mediant conducted the survey during the 2017 SIFMA Operations Conference. The largest category of survey participants was broker-dealers, at nearly one-third of all respondents. Other respondent firms included solution providers (23 percent), banks (13 percent), clearing/settlement companies (11 percent), and fund companies (7 percent). Financial advisors, asset managers, and regulators also participated in the survey.