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There is an assumption that technology can and will change the way in which fund managers operate now and in the future. This is an overly simplistic view, which managers need to reject and focus on what technology actually means to them.

It's not technology by itself that will roll up and make the sweeping changes, it’s how the people adapt to this technology that determines the change. If someone is open minded and determined enough to make the tough decisions and enforce on themselves, and their firms, new ways of doing business to such an extent that the culture within the team and the business starts to change, then change occurs.

This is a cultural change, technology is the set of tools.

Those who operate within financial services can take the viewpoint that advancement in digital technologies is the elucidation to their problems and challenges. That by employing a couple of fresh faced, computer science graduates who can go to work on the buzz word solutions such as 'big data', 'block chain', 'artificial intelligence' (or even more coolly referred to as just, 'AI') and 'machine learning', will trigger a wave of cost efficiency's, value added services and technological revolution from within.

Organising an objective viewpoint to these technologies is fundamentally wrong. Financial technology advancements cause organisations of all shapes and sizes to jump on the bandwagon, without having the idea or imagination that behind the adoption of these technologies there has to be a deep desire to want to change in the first place. The change has to come, culturally from within the organisation first.

By following an approach such as 'everyone else is doing this, so we must as well' the risks can become so disruptive that core business models and processes can be upset, essentially shooting oneself in the foot, or even the head. Advancements in technology can't be ushered in as alibis so that firms can be seen to be doing something. If the push to change isn't there, the limitations of the change will soon become apparent.

For there to be any change within this industry, first you have to be willing to change internally and culturally before turning to technology.

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We're currently working on a range of opinion reports, events and surveys that seek to challenge the stated order of the institutional finance sector. To learn more about topics that may disrupt your thinking, visit us @ClearPathAnalysis.com

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