Singapore has more technology innovation leaders than Hong Kong

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The financial services industry, including the Fund management industry, is undergoing significant technological changes due to the emergence of new technologies such as block chain and robot advance. Fund managers, distributors, and transfer agents (TS) will need to evolve to adapt to these changes. Getting ahead of the curve in exploring new concepts, trends, and ideas will require certain capabilities, and in some cases, adopting completely different rhetoric and mindset about the commercial landscape.

Predicting changes is not an easy task, and even the best modern technologies are not yet able to give an accurate forecast. What should companies do? You need to master technologies, interact with people and partners in your business to get certain knowledge. Success awaits companies that use technology to meet future market needs, rather than to support the status quo. New technologies should be considered as a means of modernizing existing processes and a tool for reusing these processes.

The role of technological breakthroughs in the Fund management business

New technologies will soon change the Fund management sector. Market participants should be receptive to the latest technological trends and be aware of how they will affect their business. Firms that cannot only determine the degree of impact of innovations on the business but also develop strategies for their use for the development of the company will be able to remain in the market. Information technology is a strategic resource that requires managers to have a competent combination of skills and experience. Previously, boards of Directors and management groups were dominated by accountants, lawyers, and management consultants, but according to recent trends, professional technologists are required.

Stephen Seow, head of Asia capital management at Mercer, said that successful innovators in Finance will be people who create a product that really affects people’s lives. Those who talk about innovation in terms of product prices already may be fighting for their place in the market. The main reason for creating business should be to change or improve people’s lives. He also gives an example the Airbnb-an online platform for placement, search, and short-term rental of private housing around the world. This site appeared because the founders were disappointed with high rents and expensive hotel rooms in major cities. Airbnb has challenged the usual way of life, using information technology, and now has achieved huge success. Fund managers and financial services managers should think like Airbnb developers.

The number of technologists among the heads of firms is higher than in Hong Kong

The number of technologists among company managers varies depending on the sector of the economy. Thus, among the analyzed Hong Kong companies, it was revealed that the number of technology leaders is in the field of information technology-6 technologists in senior positions. This is not surprising.

Calastone research shows that growth in the number of technologists in senior positions in Hong Kong’s financial sector has been slower than in Singapore. EY’s research into the international FinTech sector shows that Hong Kong lags behind Singapore in talent acquisition, capital and demand, which may explain the slower growth in the number of technologists. According to EY, there is no clear regulatory framework in Hong Kong, which makes it harder for FinTech firms to find work. This may be due to the fact that Hong Kong’s regulatory authorities have not found opportunities in relation to financial technologies, as was done in Singapore. Since the publication of the EY study, the monetary authority of Hong Kong (HKMA), however, has made significant progress with the establishment of the Fintech facilitation office in March 2016 to promote the development and promotion of the FinTech ecosystem in Hong Kong.

Despite this progress, Calastone data shows that businesses in Hong Kong still need to pay more attention to improving the representation of technologists in management functionality. For all HSI 100 industries, it is important that companies actively engage in technological change. This is also important for Hong Kong if it wants to maintain its competitiveness in the region, especially in view of the success achieved in Singapore and Australia, not to mention mainland China.

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