Why Finance is Lagging Behind on Tech Adoption
As with every other major industry and sector, the rapid proliferation and advancement of technological progress is changing the world of finance. But are we using available technology to maximum benefit? Are we adapting to the changing landscape as quickly and adeptly as we could? Speaking from the perspective of a digital influencer with 10 years of experience in the financial industry, I say that we can and must do better.
by Grace Reyes, President of AAAIM
In healthcare, high-tech functionality is marrying traditional models of care (as seen in the recent announcement between Apple and Aetna). In food and beverage, technology that will transform our retail food experience is currently being tested and fine-tuned. In the automotive sector, driverless cars are emerging from the ether of innovation. All around us, the progression of the digital revolution is changing the way we buy, live and think.
Experts are calling our current climate the fourth industrial revolution — the evolution of a phenomenon that began in human civilization around 1760 and has seen multiple surges in growth and innovation since then. This was the theme of this year’s World Economic Forum in Davos, Switzerland, which just wrapped up a few weeks ago. According to forum speakers, the difference between our current revolution and past periods of innovation is not just found in the advancement of our technology, but in the rate of acceleration. For example, look at the adoption of the telephone. It took 75 years for 100 million people to get access to the telephone. By contrast, the game “Pokemon Go” app garnered that many users in a single month in 2016. We’re expanding technological adoption at an unprecedented rate, and may see this momentum speed up even further in the years ahead.
What does this all mean for the financial sector? Like other industries, finance has already seen numerous changes from the digital revolution, including the sharing of knowledge, the empowerment of financial customers and shareholders, and improved data analytics. More changes are closing in on the horizon, such as the looming shift to Asian technological innovations and blockchain technology.
That having been said, I’d argue that we’re still limiting ourselves and thinking smaller than we should. Some of this is due to the regulation embedded in our industry, and that is not going to be an easy fix. But a great deal of the lag is due to our own perspectives and actions. Too many of my fellows, idols and colleagues, among them some of the most well-known and experienced in our sphere, are shying away from digital tools and resources.
Let’s take a closer look at a single aspect of today’s technology — social media for business use. One of the most impactful changes I’ve witnessed in my years in the business has been the emergence and adoption of LinkedIn. For those of us who utilize the site to maximum effect, the return on investment is tremendous. Yet this digital channel remains woefully under-utilized by experts in our space. Countless financial leaders relegate themselves to watching from the sidelines, participating in a LinkedIn dialogue only as an observer, occasionally interacting with a post but doing little to build or engage an audience. Granted, some of us are limited by regulation in this space as well (as an example, some finance firms prohibit their employees from “liking” a post connected to another financial institution). But these minor roadblocks should not prevent us from working efficiently and effectively on the site within our boundaries. Especially given the ample opportunities awaiting us there.
For me, dedicated LinkedIn investment and frequent networking has helped to propel my professional and personal mission to promote gender and ethnic diversity as President of the Association of Asian American Investment Managers, in addition to connecting me with boundless new business opportunities. But none of this would have been possible if I had been passive with the platform. In a way, digital tools are like a cocktail party — you can be a wallflower or you can connect with people, make a memorable impact and establish relationships that can last for a lifetime. The rate and depth of your engagement is entirely up to you.
Today I’m calling on my industry (particularly those of us with robust institutional and historical knowledge of our space) to mold and shape our expertise to fit the digital channels currently available to us. Do not sit on the sidelines or rely on outdated modes of information sharing. Dive into the digital world and make better use of the tools at your disposal. The sooner we adapt to the ways in which the financial landscape has already changed, the sooner we will be able to realize the benefits and catch up to other tech-savvy industries.
Grace Reyes is one of the most prominent voices in finance when it comes to promoting diversity and gender balance in the investment management industry. As the President of the Association of Asian American Investment Managers (AAAIM), a non-profit organization featuring corporate members with over $1T in AUM, Grace helps Emerging Managers get access to the largest institutional investors. Over the past decade she has formed a close rapport with an array of industry leaders and prominent investors — relationships that have helped her bring awareness to this personal and professional mission as she leads and drives growth for AAAIM. Grace’s message is further amplified through her top 1% investment management profile on Linkedin where she engages with 13,000+ followers sharing selfies and conversations with some of the industry’s best-known investors.
Grace’s previous experience includes time as the Head of Investor Relations & Fundraising at The Reliant Group, a real estate private equity firm with $1.8B in assets under management. Most recently before joining AAAIM, she worked on the corporate and business development team at Switchfly, a travel-travel firm, reporting to the Executive suite.
