Expert Insights
Avoiding the fintech bandwagon
It is important for those technology vendors with established and diversified systems
and software solutions across financial services to stand apart from the flurry of
fintechs trying to survive in a competitive market, says Nicholas Hacking of ERI.
It is increasingly true in wealth manage-
Diversified
ment that any technology company with
At the same time, amid the wave of
any type of connectivity to financial
consolidation across private banking, it
services calls itself a ‘fintech’. Yet this is
is imperative that vendors have diverse
blurring the definition, and might cloud
capabilities to deliver solutions beyond
understanding about which firms can
this segment. “We are now also serving
do what – and who is more or less likely
retail banking, payment processing and
to stay the course.
trade finance,” explains Hacking.
For example, a key issue for banks when
But it’s no surprise that Hacking says
assessing potential fintech partners
Asia more broadly is an important part
comes down to risk – whether the firm
of ERI’s business, and a region within
will still be around in 12 months’ time.
which the firm is committed to growing.
“Increasingly, we will see in developed
“There will be a shake-out and many
markets like Hong Kong and Singapore,
[fintechs] will fail,” predicts Nicholas
that the regulator plays an internation-
Hacking, director of sales at ERI. “They
al-type role, in terms of more complex-
Nicholas Hacking
are not sustainable if they don’t have
ity and control. They are asking for more
ERI
enough margin and longevity.”
granular information from the banks,
which is similar to Western regulators.”
By contrast, he is quick to distance ERI
from this space. “We are a software
ERI aims to help its clients deal with such
company that has and will continue to
challenges, and in doing so, the firm is
Elsewhere, it is showing the diversity of
service financial services clients. And
expanding out of Singapore, including
its capabilities and solutions. For
we will evolve and develop our technol-
growing relationships with existing
example, it is working with a major In-
ogy as necessary.”
wealth management clients.
donesian brokerage house.
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Technology