SPONSORED ARTICLE
NEMA 2015 WORLD TOUR
2015
TECHNOLOGY OFFERS TO REVOLUTIONISE THE BUSINESS OF FINANCE, BUT REALITY CAN TRIP UP EVEN THE MOST EXCITING TECHNOLOGIES, WRITES PHILIPPE DENIS, CHIEF DIGITAL OFFICER FOR BNP PARIBAS SECURITIES SERVICES.
STUDY THE TECHNOLOGY NOT THE HYPE The question then is to understand when and how a financial institution can invest or support a technology based on its reality, and not its hype. In a cost conscious environment, there is little room for ‘blue sky’ investment. Analyst firm Gartner has long offered an insight into future growth in new technologies and its ‘hype curve’ tracks the movement of such technologies to the ‘Plateau of Productivity’ where the firm sees mainstream adoption taking off. If one looks at the four stages prior to this: the Technology Trigger; the Peak of Inflated Expectations; the Trough of Disillusionment; and the Slope of Enlightenment one can find a professional estimation of a timeframe and stage of maturity. It is clear that technologies such as blockchain and Apache Hadoop have considerable potential for enhancing post trade service infrastructure, and with an army of entrepreneurs – and internal technologists at financial institutions – attempting to turn
these systems into workable tools there are a range of investment opportunities for financial services firms to pursue. Some will need funding, some will need professional guidance from within the industry. The finance industry must engage with these firms to keep track of the latest developments and invest in systems and providers where they see opportunity. The ability to deploy computing resources virtually means that each project no longer needs its own datacentre, and much of the technology developed today can be repurposed when needed, making experimentation cheaper than ever. The potential exists to enhance and streamline post trade processes, and with careful investment decisions chief information officers can ensure their firms are tracking the curve of development and not hype.
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Philippe Denis Chief Digital Officer, BNP Paribas Securities Services BNP Paribas is the lead sponsor of NeMa Americas, taking place in Miami 27-28 October. BNP Paribas is also a supporting sponsor of NeMa Asia, taking place in Shanghai 9-11 November.