The Investment Association (IA) has published a new guide offering investment managers "comprehensive advice" on how to incorporate fintech into their businesses.
Best Practice for Fintech Engagement, spearheaded by Graham Kellen, chief technology officer at Schroders Personal Wealth, and written by the IA engine fintech advisory panel, has concluded that if investment managers are to "successfully adopt cutting-edge technology", there must be a "clear, specific business problem to solve and an organisational culture and multi-level senior sponsorship supportive of innovation".
It provides guidance for managers in identifying potential fintech partners and solutions to business problems.
Recommendations are also offered on organisational readiness for being able to consider engagement with fintech firms; scouting out and assessing fintech solutions; common pitfalls to avoid when working with fintechs; mutual intellectual property considerations; ensuring tech solutions are fit for investment management; and being a responsible client of a start-up.
Gillian Painter, head of membership and the engine at the IA, said: "For too long the investment management industry has been a laggard at adopting the new technologies of tomorrow. But in the face of consistent margin pressure, increasingly sophisticated client expectations and rapid digitalisation in response to Coviid-19, it is now more important than ever that we identify hot spots for automation and develop effective processes to ensure the latest technologies are utilised to their full potential."
"That is why our new guidance recommends collaboration and communication as central to a strong business partnership between investment managers and fintechs and ultimately to ensure we better serve savers and investors."