Why Institutional Investors are Turning to FinTech

FinTech is entering a third phase focusing on B2B and enterprise SaaS technologies. Following the development of consumer-based payment and small-business focused lending solutions, institutional investors are embracing FinTech solutions. They are both investing in FinTech and adopting technology and innovation in their day-to-day business, according to panelists at the 6th Family Office FinTech Summit discussion, “Why Family Offices are Doubling Down on FinTech Companies.”

The conversation that followed provided questions for financial professionals to consider during the rest of 2021. Panel members were: Carole Crawford, managing partner, fincap360; Ulrike Hoffmann-Burchardi, senior portfolio manager, TUDOR Investment Corporation; Anna Garcia, early-stage VC; Logan Allin, founder, FinVenture Capital; David Teten, founder, Versatile Venture Capital.

  • How we can use technology to generate operational alpha, which is more predictable than performance alpha (David)?
  • How do banks and asset managers manage and construct products using digital assets (Logan)?
  • How can we improve market data, portfolio management, and reporting technology to better manage ESG data (Logan)?
  • How can firms improve the customer experience with digital onboarding (Carol)?
  • How do we unlock the power of data to optimize wealth management and operational processes (Ulrike)?
  • What next-generation technology has the potential to unlock the power of internal data and combine it with objective external factors (Ulrike)?
  • How can we create infrastructure to handle crypto assets as they gain institutional and mainstream acceptance (Anna)?
  • What are the possibilities for people to own all aspects of their identities in one place, including health, finances, and personal habits (Anna)?

Our April stories mirrored many of those themes through articles covering banks’ continuing investment in FinTech and the increasing legitimation of cryptofinance within traditional financial institutions. See our April 2021 review.