Technology in investments

By Friedrich Rappard, Chief Information Officer at Momentum Investments

Friedrich Rappard, Chief Information Officer at Momentum Investments

As certain parts of investments businesses become commoditised, the drive for efficiencies and differentiated and innovative experiences and solutions is fast becoming a key business imperative. We believe technology solutions and partnerships is a key success factor to achieve this. Technology continues to disrupt traditional business practices and enable the delivery of new solutions, at an ever-increasing speed. Prime examples of this are the ongoing emergence, adoption and maturity of FinTech, RegTech, AdviceTech and RiskTech solutions to the market.

The recent Covid-19 pandemic also forced many businesses to accelerate their digital strategies.

New opportunities and potential new business models

The ongoing digital promise and technology hype will continue to drive change in the investment industry. Some of the most notable areas of disruption and opportunities include:  

  • Blockchain – various industry initiatives will cause disruption to the traditional way of doing business. 
  • Internet of Things and Big data – the explosion of data and the ability to analyse and use the data will be key to drive innovation. Key activities include the segmentation of clients and financial advisers to better understand their needs to deliver personalised solutions. 
  • Integration and automation – Open technology standards and exposing an organisation’s digital services and assets through application programming interfaces (APIs) in a controlled way, will drive new business models, where different parts of the industry can partner. The automation of previous manual processes will improve efficiencies and deliver better business and client outcomes.  
  • Digital channels – products and services can be delivered through a variety of channels, including mobile, web and social, to reach and enhance the way we engage and service our advisers and clients.
  • Cloud vendors – various large Cloud providers have established themselves in South Africa and allows businesses to improve their speed and agility. 
  • Artificial Intelligence (AI) and Machine learning (ML) – cloud processing and big data, combined with AI and ML, will replace repetitive work usually performed by humans and reduce risk and improve insights.

Digital world: modern practices, market demand and experience

Investing is personal and clients and financial advisers demand personalised digital experiences, platforms, and processes. We continue to support and deliver solutions, products, and services into adviser practices, enabling the adviser to become digitally advanced to optimise their offerings. Various exciting opportunities exist to market, deliver and support our offering to the market.

  • Digital marketing – showcasing products, services, people and initiatives. Technology enables us to deliver content faster and reach a wider audience. The tracking of market sentiment supported by personalised and focused messaging.  
  • Training and knowledge management – the digital delivery, the access to information, management of content and tracking use and progress.
  • Support – digital delivery and access of up-to-date content is distributed to client and adviser market. Online and real-time support services are enabled through technology like chatbots to deliver alternative support channels.

As an example of how we have positioned ourselves for the future, we are partnering with FNZ, which has a 15-year history of successful strategic partnerships with some of the world’s largest financial companies and has helped them to implement the digital transformation required to continuously evolve their services. FNZ gives financial institutions a platform that integrates seamlessly with their business and provides partners, like Momentum Wealth, with an unrivalled platform to accelerate digital transformation and improve the adviser experience and proposition.

Cybersecurity 

When it comes to technology, cybersecurity and the need to protect information is crucial. The frequency and sophistication of cyberattacks are increasing, as is the cost for companies to invest in security. A dedicated focus and ongoing evolution of secure practices is required to ensure these threats are prevented, and our technology and information assets are protected.

The advances of technology, the impact it will have on the way we do business today, and the possibilities it offers are endless and are only constrained by our imagination and focus. At Momentum Investments, we keep a close eye on these developments and are continuously looking for practical ways to make use of these opportunities to enhance our offering to our financial advisers and their clients.

Momentum Wealth (Pty) Ltd (FSP 657) is an authorised financial services provider. Momentum Investments is part of Momentum Metropolitan Life Limited, an authorised financial services and registered credit provider (FSP 6406). 

Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za