1 00:00:03,440 --> 00:00:06,800 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:06,880 --> 00:00:09,960 Speaker 1: dot Com the radio plus mobile lap and on your radio. 3 00:00:10,240 --> 00:00:14,360 Speaker 1: This is a Bloomberg business flag from Bloomberg World Headquarters, 4 00:00:14,400 --> 00:00:17,480 Speaker 1: Signed Charlie Pellett. Just getting word from GAP that it's 5 00:00:17,600 --> 00:00:21,319 Speaker 1: July comp sales down four percent. Estimates were for a 6 00:00:21,480 --> 00:00:26,080 Speaker 1: drop of one percent. Lending Club's loss widened to eighty 7 00:00:26,120 --> 00:00:29,159 Speaker 1: one point four million in the second quarter as the 8 00:00:29,240 --> 00:00:33,120 Speaker 1: online loan ventures sought to contain damage from a surprise 9 00:00:33,280 --> 00:00:37,680 Speaker 1: leadership change in May. The company also expanded that shake up, 10 00:00:37,760 --> 00:00:42,479 Speaker 1: replacing its chief financial officer. Stocks lower SMP five hundred 11 00:00:42,440 --> 00:00:46,440 Speaker 1: index dropping two points a little change, down one tenth 12 00:00:46,440 --> 00:00:49,560 Speaker 1: of one percent. Down. Industrial is also down one tenth 13 00:00:49,560 --> 00:00:53,600 Speaker 1: of one percent, falling fourteen points to eighteen thousand, five hundred, 14 00:00:53,640 --> 00:00:57,400 Speaker 1: twenty nine, Gold down three forty anounced the thirteen thirty 15 00:00:57,480 --> 00:00:59,600 Speaker 1: six and drop there of three tenths of one percent, 16 00:01:00,040 --> 00:01:02,680 Speaker 1: and crude Oil West Texas Intermediate up two and a 17 00:01:02,720 --> 00:01:06,679 Speaker 1: half percent of one oh six and barrel to eight six. 18 00:01:06,959 --> 00:01:12,280 Speaker 1: I'm Charlie Pelts, and that's a Bloomberg Business flash. It 19 00:01:12,480 --> 00:01:16,880 Speaker 1: is is taking stoff with Kathleen Hayes on Bloomberg Radio. 20 00:01:17,560 --> 00:01:22,240 Speaker 1: I think that financial technology innovation only comes from companies 21 00:01:22,280 --> 00:01:26,520 Speaker 1: whose names you've never heard of. Not true. Joining us now, 22 00:01:26,760 --> 00:01:30,520 Speaker 1: Ram Nagapon. He is the chief information officer for Pershing. 23 00:01:30,560 --> 00:01:33,600 Speaker 1: They're based in Jersey City, New Jersey, and he's here 24 00:01:33,640 --> 00:01:36,560 Speaker 1: to tell us more about the challenges and the opportunities 25 00:01:36,600 --> 00:01:39,640 Speaker 1: in fintech. Rom It's always a pleasure. Thank you very 26 00:01:39,680 --> 00:01:43,640 Speaker 1: much for coming in. How do you describe fintech to 27 00:01:43,880 --> 00:01:46,800 Speaker 1: people that say, all right, I understand financial and I 28 00:01:46,880 --> 00:01:50,720 Speaker 1: understand technology, but what's the big deal about putting them together? 29 00:01:50,760 --> 00:01:53,360 Speaker 1: Tell us about it. Okay, thank you for having me here, 30 00:01:53,760 --> 00:01:56,920 Speaker 1: so then talk about fintech. There are two things that 31 00:01:57,000 --> 00:02:00,960 Speaker 1: I'm going to tell you. One is there are companies 32 00:02:01,080 --> 00:02:06,560 Speaker 1: using technology to disrupt that's disrupting something, and then there 33 00:02:06,560 --> 00:02:11,880 Speaker 1: are companies that uses technology to enable experiences to make 34 00:02:11,919 --> 00:02:14,880 Speaker 1: it a lot better. These are the two different things 35 00:02:15,200 --> 00:02:19,320 Speaker 1: right now, both is going to happen because the first 36 00:02:19,400 --> 00:02:25,520 Speaker 1: example are when the big companies are inefficient. These companies 37 00:02:25,520 --> 00:02:29,560 Speaker 1: are looking for opportunity to take them out on those 38 00:02:29,639 --> 00:02:34,320 Speaker 1: areas that's disrupting them. Then the other side are enablers. 39 00:02:34,360 --> 00:02:38,240 Speaker 1: They actually work with you, They actually enhances the overall 40 00:02:38,320 --> 00:02:41,920 Speaker 1: experience that actually brings you a lot of good things 41 00:02:41,919 --> 00:02:45,600 Speaker 1: about it. Both are good, both will happen, but I 42 00:02:45,639 --> 00:02:49,080 Speaker 1: think more good is going to happen on enabling the 43 00:02:49,320 --> 00:02:52,880 Speaker 1: fin techs along with you. That's my view on this. 44 00:02:52,960 --> 00:02:55,880 Speaker 1: All right, So let's talk about enabling for just a moment. 45 00:02:55,960 --> 00:02:59,680 Speaker 1: Because in the world a registered investment advisors and money 46 00:02:59,680 --> 00:03:05,079 Speaker 1: man chuers, uh, they are constantly trying to juggle, right, 47 00:03:05,120 --> 00:03:09,720 Speaker 1: You're juggling what the client wants, what your organization or 48 00:03:09,800 --> 00:03:13,760 Speaker 1: your research is telling you. But then also you're having 49 00:03:13,800 --> 00:03:17,280 Speaker 1: to do it at a lower and lower cost point. 50 00:03:17,440 --> 00:03:21,520 Speaker 1: Tell us about this. So the advisors in develop management 51 00:03:21,560 --> 00:03:24,640 Speaker 1: space is challenged by, as you said, two things. One 52 00:03:24,800 --> 00:03:28,680 Speaker 1: is providing the best client experience and the other you 53 00:03:28,760 --> 00:03:33,320 Speaker 1: said is about efficiency or how they operate. Yes, they 54 00:03:33,440 --> 00:03:35,480 Speaker 1: got to be very efficient. They got to look for 55 00:03:35,560 --> 00:03:39,560 Speaker 1: technology and innovation that's going to help them operate very 56 00:03:39,600 --> 00:03:43,160 Speaker 1: efficient because they want to spend time with their client 57 00:03:43,800 --> 00:03:47,160 Speaker 1: and actually do the right thing for their client. That's 58 00:03:47,160 --> 00:03:50,600 Speaker 1: what they want to focus now. Delivering the right experience 59 00:03:50,600 --> 00:03:53,720 Speaker 1: to their client is important and that's needed in the 60 00:03:53,920 --> 00:03:57,920 Speaker 1: demographics that's changing. Between how they use the technology so 61 00:03:59,080 --> 00:04:02,200 Speaker 1: where they should focus immediately is applied technology to become 62 00:04:02,280 --> 00:04:05,240 Speaker 1: very efficient and focused on the client. Now, as far 63 00:04:05,280 --> 00:04:07,720 Speaker 1: as focusing on the client goes, a lot of this 64 00:04:07,800 --> 00:04:11,400 Speaker 1: has to do with things that are custom made because 65 00:04:11,440 --> 00:04:14,960 Speaker 1: not every client fits into the same box. How have 66 00:04:15,200 --> 00:04:19,200 Speaker 1: you used the technology or open the technology rather at 67 00:04:19,240 --> 00:04:24,120 Speaker 1: Pershing in order to give the registered rep the tools 68 00:04:24,680 --> 00:04:28,720 Speaker 1: that are customizable. So what we have done is sometimes 69 00:04:29,080 --> 00:04:33,080 Speaker 1: the anyone who tries to take the technology on the 70 00:04:33,160 --> 00:04:37,000 Speaker 1: hand should be willing to spend consistently to keep up 71 00:04:37,040 --> 00:04:41,479 Speaker 1: the integration and experience together. That's a hard thing to do. 72 00:04:42,120 --> 00:04:44,839 Speaker 1: Certain advisers of the r A is willing to do it. 73 00:04:45,080 --> 00:04:47,800 Speaker 1: That's good they will and for them we have opened 74 00:04:47,920 --> 00:04:52,680 Speaker 1: up the Pershing services as an API, which is Application 75 00:04:52,760 --> 00:04:56,120 Speaker 1: programming interface where they can tap our services and put 76 00:04:56,160 --> 00:04:59,920 Speaker 1: it into an integration model. That's one thing for certain 77 00:05:00,440 --> 00:05:03,560 Speaker 1: r s who does not want to spend all that 78 00:05:03,760 --> 00:05:07,560 Speaker 1: money and they come to Persing for all the technology 79 00:05:07,640 --> 00:05:09,560 Speaker 1: things that we have done for them, we give and 80 00:05:09,800 --> 00:05:12,600 Speaker 1: end to end solution that they get on our platform 81 00:05:12,800 --> 00:05:15,159 Speaker 1: and they can use all the type of services. So 82 00:05:15,200 --> 00:05:20,000 Speaker 1: this might be everything from trade initiation to execution to settlement, 83 00:05:20,320 --> 00:05:23,960 Speaker 1: to then portfolio managed. That is correct. All these pieces 84 00:05:24,000 --> 00:05:27,960 Speaker 1: are all properly integrated into one platform to for them 85 00:05:27,960 --> 00:05:30,680 Speaker 1: to easily get on board. So that's the other model. 86 00:05:31,040 --> 00:05:33,719 Speaker 1: So now there are pros and counts to these models. 87 00:05:33,839 --> 00:05:37,039 Speaker 1: Depending on who you are and what your business model is, 88 00:05:37,120 --> 00:05:38,920 Speaker 1: you will end up picking which one do you want 89 00:05:38,920 --> 00:05:44,840 Speaker 1: to go with. Use the term digital advice in this context, 90 00:05:46,160 --> 00:05:49,880 Speaker 1: so a digital advice, I know the term robo advice, 91 00:05:49,920 --> 00:05:54,880 Speaker 1: digital advice. There are many things being used. There are 92 00:05:54,880 --> 00:05:58,560 Speaker 1: two connotations here. One is wow, then the technology is 93 00:05:58,600 --> 00:06:00,760 Speaker 1: going to take away the role of an advisor, and 94 00:06:00,800 --> 00:06:04,120 Speaker 1: the other one is the technology is going to help 95 00:06:04,200 --> 00:06:08,080 Speaker 1: advisor do things a lot better. So I'm on the 96 00:06:08,160 --> 00:06:10,760 Speaker 1: side of technology is going to help you. It's going 97 00:06:10,800 --> 00:06:14,279 Speaker 1: to enable you to do your thing a lot better. 98 00:06:14,839 --> 00:06:17,680 Speaker 1: That's on the side, and it cannot be replaced because 99 00:06:17,839 --> 00:06:20,679 Speaker 1: we talked about artificial intelligence for the last thirty years. 100 00:06:20,720 --> 00:06:24,039 Speaker 1: Did it replace any human being? No, But it's an 101 00:06:24,040 --> 00:06:28,120 Speaker 1: augmenting it's helping you. So the digital advice is about 102 00:06:28,200 --> 00:06:32,120 Speaker 1: how do you use this technology to make your job 103 00:06:32,160 --> 00:06:34,600 Speaker 1: a lot better so that you could be a great 104 00:06:34,600 --> 00:06:38,680 Speaker 1: advisor to your client. What would be one thing that 105 00:06:38,760 --> 00:06:42,600 Speaker 1: you wish sure that you foresee in the future that 106 00:06:42,680 --> 00:06:48,320 Speaker 1: advisors will have access to that will demonstrably improve their 107 00:06:48,360 --> 00:06:53,240 Speaker 1: performance or their customer service. It's about applying more and 108 00:06:53,360 --> 00:06:57,119 Speaker 1: more nor technology to help the experience a lot better. 109 00:06:57,480 --> 00:07:01,680 Speaker 1: That is important. Um, you know, whatever they do. Uh. 110 00:07:01,720 --> 00:07:04,560 Speaker 1: It started with give me sound by twenty four access 111 00:07:04,600 --> 00:07:06,880 Speaker 1: to my information. That's a couple of years ago that 112 00:07:06,920 --> 00:07:10,040 Speaker 1: it started. And now keep me connected all the time, 113 00:07:10,200 --> 00:07:13,040 Speaker 1: that's the second thing. Now it could be future. You know, 114 00:07:13,120 --> 00:07:16,680 Speaker 1: I want to be completely predictive. Give me a lot 115 00:07:16,720 --> 00:07:19,520 Speaker 1: of cognitive things. Those things are going to happen in 116 00:07:19,560 --> 00:07:22,200 Speaker 1: the future. So it's about keep up with the evolution 117 00:07:22,200 --> 00:07:25,240 Speaker 1: of the technology and selvia clients. Thanks very much for 118 00:07:25,320 --> 00:07:28,760 Speaker 1: joining me from Nagapon. He is the chief investment officer 119 00:07:28,920 --> 00:07:33,720 Speaker 1: for Pershing. They're based in Jersey City, New Jersey. Thanks 120 00:07:33,720 --> 00:07:37,400 Speaker 1: for joining me on taking stock. I'm pim Fox. This 121 00:07:37,800 --> 00:07:49,960 Speaker 1: is Bloomberg coming up. Bloomberg Law discusses whether there is 122 00:07:50,040 --> 00:07:54,600 Speaker 1: a legal claim to delay or to completely stop Britain's 123 00:07:54,640 --> 00:07:57,600 Speaker 1: departure from the European Union. That's next