Speaker 1: Global business news twenty four hours a day. If Bloomberg
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Speaker 1: This is a Bloomberg business flag from Bloomberg World Headquarters,
Speaker 1: Signed Charlie Pellett. Just getting word from GAP that it's
Speaker 1: July comp sales down four percent. Estimates were for a
Speaker 1: drop of one percent. Lending Club's loss widened to eighty
Speaker 1: one point four million in the second quarter as the
Speaker 1: online loan ventures sought to contain damage from a surprise
Speaker 1: leadership change in May. The company also expanded that shake up,
Speaker 1: replacing its chief financial officer. Stocks lower SMP five hundred
Speaker 1: index dropping two points a little change, down one tenth
Speaker 1: of one percent. Down. Industrial is also down one tenth
Speaker 1: of one percent, falling fourteen points to eighteen thousand, five hundred,
Speaker 1: twenty nine, Gold down three forty anounced the thirteen thirty
Speaker 1: six and drop there of three tenths of one percent,
Speaker 1: and crude Oil West Texas Intermediate up two and a
Speaker 1: half percent of one oh six and barrel to eight six.
Speaker 1: I'm Charlie Pelts, and that's a Bloomberg Business flash. It
Speaker 1: is is taking stoff with Kathleen Hayes on Bloomberg Radio.
Speaker 1: I think that financial technology innovation only comes from companies
Speaker 1: whose names you've never heard of. Not true. Joining us now,
Speaker 1: Ram Nagapon. He is the chief information officer for Pershing.
Speaker 1: They're based in Jersey City, New Jersey, and he's here
Speaker 1: to tell us more about the challenges and the opportunities
Speaker 1: in fintech. Rom It's always a pleasure. Thank you very
Speaker 1: much for coming in. How do you describe fintech to
Speaker 1: people that say, all right, I understand financial and I
Speaker 1: understand technology, but what's the big deal about putting them together?
Speaker 1: Tell us about it. Okay, thank you for having me here,
Speaker 1: so then talk about fintech. There are two things that
Speaker 1: I'm going to tell you. One is there are companies
Speaker 1: using technology to disrupt that's disrupting something, and then there
Speaker 1: are companies that uses technology to enable experiences to make
Speaker 1: it a lot better. These are the two different things
Speaker 1: right now, both is going to happen because the first
Speaker 1: example are when the big companies are inefficient. These companies
Speaker 1: are looking for opportunity to take them out on those
Speaker 1: areas that's disrupting them. Then the other side are enablers.
Speaker 1: They actually work with you, They actually enhances the overall
Speaker 1: experience that actually brings you a lot of good things
Speaker 1: about it. Both are good, both will happen, but I
Speaker 1: think more good is going to happen on enabling the
Speaker 1: fin techs along with you. That's my view on this.
Speaker 1: All right, So let's talk about enabling for just a moment.
Speaker 1: Because in the world a registered investment advisors and money
Speaker 1: man chuers, uh, they are constantly trying to juggle, right,
Speaker 1: You're juggling what the client wants, what your organization or
Speaker 1: your research is telling you. But then also you're having
Speaker 1: to do it at a lower and lower cost point.
Speaker 1: Tell us about this. So the advisors in develop management
Speaker 1: space is challenged by, as you said, two things. One
Speaker 1: is providing the best client experience and the other you
Speaker 1: said is about efficiency or how they operate. Yes, they
Speaker 1: got to be very efficient. They got to look for
Speaker 1: technology and innovation that's going to help them operate very
Speaker 1: efficient because they want to spend time with their client
Speaker 1: and actually do the right thing for their client. That's
Speaker 1: what they want to focus now. Delivering the right experience
Speaker 1: to their client is important and that's needed in the
Speaker 1: demographics that's changing. Between how they use the technology so
Speaker 1: where they should focus immediately is applied technology to become
Speaker 1: very efficient and focused on the client. Now, as far
Speaker 1: as focusing on the client goes, a lot of this
Speaker 1: has to do with things that are custom made because
Speaker 1: not every client fits into the same box. How have
Speaker 1: you used the technology or open the technology rather at
Speaker 1: Pershing in order to give the registered rep the tools
Speaker 1: that are customizable. So what we have done is sometimes
Speaker 1: the anyone who tries to take the technology on the
Speaker 1: hand should be willing to spend consistently to keep up
Speaker 1: the integration and experience together. That's a hard thing to do.
Speaker 1: Certain advisers of the r A is willing to do it.
Speaker 1: That's good they will and for them we have opened
Speaker 1: up the Pershing services as an API, which is Application
Speaker 1: programming interface where they can tap our services and put
Speaker 1: it into an integration model. That's one thing for certain
Speaker 1: r s who does not want to spend all that
Speaker 1: money and they come to Persing for all the technology
Speaker 1: things that we have done for them, we give and
Speaker 1: end to end solution that they get on our platform
Speaker 1: and they can use all the type of services. So
Speaker 1: this might be everything from trade initiation to execution to settlement,
Speaker 1: to then portfolio managed. That is correct. All these pieces
Speaker 1: are all properly integrated into one platform to for them
Speaker 1: to easily get on board. So that's the other model.
Speaker 1: So now there are pros and counts to these models.
Speaker 1: Depending on who you are and what your business model is,
Speaker 1: you will end up picking which one do you want
Speaker 1: to go with. Use the term digital advice in this context,
Speaker 1: so a digital advice, I know the term robo advice,
Speaker 1: digital advice. There are many things being used. There are
Speaker 1: two connotations here. One is wow, then the technology is
Speaker 1: going to take away the role of an advisor, and
Speaker 1: the other one is the technology is going to help
Speaker 1: advisor do things a lot better. So I'm on the
Speaker 1: side of technology is going to help you. It's going
Speaker 1: to enable you to do your thing a lot better.
Speaker 1: That's on the side, and it cannot be replaced because
Speaker 1: we talked about artificial intelligence for the last thirty years.
Speaker 1: Did it replace any human being? No, But it's an
Speaker 1: augmenting it's helping you. So the digital advice is about
Speaker 1: how do you use this technology to make your job
Speaker 1: a lot better so that you could be a great
Speaker 1: advisor to your client. What would be one thing that
Speaker 1: you wish sure that you foresee in the future that
Speaker 1: advisors will have access to that will demonstrably improve their
Speaker 1: performance or their customer service. It's about applying more and
Speaker 1: more nor technology to help the experience a lot better.
Speaker 1: That is important. Um, you know, whatever they do. Uh.
Speaker 1: It started with give me sound by twenty four access
Speaker 1: to my information. That's a couple of years ago that
Speaker 1: it started. And now keep me connected all the time,
Speaker 1: that's the second thing. Now it could be future. You know,
Speaker 1: I want to be completely predictive. Give me a lot
Speaker 1: of cognitive things. Those things are going to happen in
Speaker 1: the future. So it's about keep up with the evolution
Speaker 1: of the technology and selvia clients. Thanks very much for
Speaker 1: joining me from Nagapon. He is the chief investment officer
Speaker 1: for Pershing. They're based in Jersey City, New Jersey. Thanks
Speaker 1: for joining me on taking stock. I'm pim Fox. This
Speaker 1: is Bloomberg coming up. Bloomberg Law discusses whether there is
Speaker 1: a legal claim to delay or to completely stop Britain's
Speaker 1: departure from the European Union. That's next