By Eva Keogan
By Luuk Jacobs
By Jonathan Max
By Luuk Jacobs
By Andy Milner
Great insights from our Imperial College Business School panel “The impact FinTech is having on the demand for skills in the Investment Management industry”By Luuk Jacobs
We partnered with Imperial College Business School for a panel discussion about the Impacts of FinTech to careers in Investment Management. We were keen to marry up the collective experience of the panel, and their insights and views, with the audience. Equally we wanted to get a feel for what the next generation of Investment Management professionals should set in their sights.
Based on the findings from our soon to be published report The Disrupted Career - FinTech, Investment Management and future careers, we created a truly interactive debate as we put the questions we used in our survey to our audience, enabling to give real-time feedback via the AlgoMe Community mobile app.
The panel consisted of Rob Carter, CEO, AlgoMe and Ruben Lara, Chief Data Officer, Standard Life Aberdeen, and Henrik Grunditz, Co-Founder & Chief Revenue Officer, Hivemind, a FinTech that is helping companies create value from complex data sets. The Moderator was Anne-Louise Burnett, Centre Manager, Imperial College Business School Centre for Global Finance & Technology.
The key questions that were discussed were:
Do I understand typical career paths in Investment Management?
The combined experience of our panel is both lengthy and varied. For example, moving from working within an investment company, joining a consulting company and also joining other industries where core skills are transferable (eg. within data science), indicated that careers are fluid and certainly not predefined. The key trend however was all the panel members, throughout their careers. kept developing and adding to their skillsets.
Are career paths less well defined due to the changes happening in the industry?
There was a general view that indeed career paths are now less well defined than before, and technology and general innovation were changing these paths as existing positions in the industry will likely be displaced by other new ones. The new careers demand an understanding of data and how they can be leveraged to create efficiency, greater understanding of clients, investments and decision making. As the technology impact is just starting to hit the Investment Management industry, career paths will be impacted in the next 10 years to a great extent, beyond what we imagine today. Some research indicates that 90% of today’s jobs will not exist in 10-15 years.
What skills will be the most important to develop careers in Investment Management?
As already mentioned, skills linked to data science will be important. Along with this, the ability to interpret what it presents, to further support risk management, controls, understanding of clients and trends in the market as well as supporting (investment) decision making. These skills will be in demand for both junior and senior positions and given the technology developments ahead of us will likely change and become more complex.
What will, and what can, you do to progress your career?
The panel indicated that if they were looking at their 20-year younger self, they would not have seen themselves in the positions they are today. Nevertheless, a key ‘red line’ through their careers was the development of their main professional interest and continuously developing the associated skills, be it business management, data and analytics, or information systems engineering. All equally being influenced by the need of these aforementioned hard technology skills.
Rob Carter stressed the value of having mentors throughout your career, people that can guide you and hold a mirror up for you. Hendrik Grunditz mentioned the benefits of networking, staying in touch with people and create a reputation of being nice, delivering constant high quality and be committed. Ruben Lara added to this the need for the softer skills and ability to influence, manage stakeholders and communication.
We believe the Investment Management professional career is about to change direction, and for some this will be a radical change. It seems everyone is in agreement and there are very exciting times ahead, especially for those with a passion for technology and change.
By Julia Kirkland
Guest blog from Julia Kirkland, Senior Partner at FSTP
If you don’t know already, which of course you do, the Markets in Financial Instruments Directive (MiFID) is EU legislation which first came into effect in 2007. It was created to regulate firms providing services to their clients which are linked to ‘financial instruments’, these being shares, bonds, units in collective investment schemes and derivatives. In addition, it covers the venues where those ‘financial instruments’ are traded.
Fast forward 10 years or so and we have an updated version – MiFID II. This includes the revised MiFID and a new Markets in Financial Instruments Regulation (MiFIR). January 3, 2018 is the day MiFID II must be implemented across Europe.
Now we’re on the cusp of this deadline, the thorny and sensitive topic of Knowledge and Competence (K&C) is bubbling up as a major concern across the industry. We’ve spoken with numerous firms in both the Asset Management and Wealth Management sectors and they have one thing in common; they’re all grappling with the assessment of competence of information providers.
Who is in scope?
In Asset Management, this may cover a wide range of roles from sales teams, client services, broker servicing staff to Portfolio Managers (the really sensitive aspect of K&C). Managers may struggle with the fact they must tell a Portfolio Manager of 20 years plus who hasn’t got a formal qualification, they need to be assessed as competent and in a very short timeframe too.
In Wealth, the scope may cover desk assistants, team secretaries and portfolio assistants who may all be in direct contact with clients, giving them information about prices, valuations, charges and providing generic market or sector views. Additionally, research teams who might attend meetings with clients to provide market, sector or stock views on a non-advised basis may fall under this too. Most of the firms we are speaking to are including research teams. Most of the above staff members have never been included in formal K&C Schemes before but this has changed.
What happens in 2018?
As it stands, information providers not assessed by January 3 will need to be supervised in their activities and oversight of any client interaction must be in place. If you’re not prepared, January 2018 is fast approaching and maybe it’s time to look outside your company for third party support and assistance.
Our guest blogger Julia Kirkland, is Senior Partner, FSTP
FSTP is a training solution provider with expertise in MiFID II and the company also runs workshops to cover Wealth and Asset Management to meet the ESMA requirements and provides advanced K&C assessments for more seasoned, professional staff.
By Jonathan Max
Really interesting article from HRB on whether Men and Women needed different kinds of networks to succeed following a study on the networks of male and female MBAs suggests that males being successful in the workforce was largely dependent on being active in a social network where as women often also sough an 'inner circle' in addition to a broader network.
Would be great to hear what our MBS/MSc members think?
Research: Men and Women Need Different Kinds of Networks to Succeed
HBR.ORG Results from a study of MBAs.
By Andy Milner
According to Ignite Europes they are:
Ability to engage Quantitative Technical knowledge Technical aptitude Adaptability Ability to think differently
By Eva Keogan
Last week was our inaugural panel session for Cass Business School where we gathered some really interesting people together to talk about the future of work in our sector.
We have mainly grown online since we launched AlgoMe Community, so it was a great experience to extend into the real world and meet students who are at the beginning of their careers and others who are already well into them, and on a path to pushing themselves further. Attending were current MBA and MSc students and alumni of Cass, and we were delighted to see such a diverse and engaged audience. We hope most, if not all, of them are now actively participating in our community. If you’re registered as a mentor, you might start receiving a few more requests.
The purpose of the evening was to talk about the Impacts of FinTech to careers in Investment Management and marry up the insights and views of the panel with our audience and also to get a feel for what the next generation of investment management professionals had set in their sights.
To do this, we shared some of the early findings from our FinTech, Investment Management and future careers Survey (we will be releasing this shortly and doing a follow up article in the community too). This allowed us to create a truly interactive debate as we put the same questions to our audience. They were then able to give feedback via the AlgoMe Community app in real-time (and thankfully it all worked beautifully without a glitch too).
The key questions we wanted to hear the views of the audience and panel on were:
- Are career paths less well defined due to the changes happening in the industry?
- What skills will be the most important to develop careers in Investment Management?
- Will FinTech and Innovation be positive or negative for future careers?
- What are the most important things to do to be successful?
There was a general feeling both Investment and Asset Management are ripe for disruption and there as an opportunity and threat of this coming from the outside due to the slow adoption of new technologies by the industry. This led into a discussion about technology skills and a skills gap. There was consensus among the panel about career paths not being too rigid, applying skillsets to new challenges can be a highly successful strategy and also advice to 'follow the good people'.
Then panel consisted of Rob Carter (CEO, AlgoMe), Ruben Lara, Chief Data Office, Standard Life Aberdeen, and Olivia Vinden, FinTech and Innovation Practice lead at Alpha FMC. Both Ruben and Olivia are members of the Advisory Panel for Velocity, the FinTech accelerator of the Investment Association, so their excellent insight into the way that FinTech is reshaping the Industry was extremely useful, and of course credible. Luuk Jacobs chaired the panel, he is co-founder of AlgoMe and AlgoMe Consulting. Each panellist was able to share their unique views of the industry and Fintech and offer career tips too. We’ve had some excellent feedback from the audience about this as well.
We are looking forward to an ongoing programme of panels and events over the coming months. If you would like to hold something similar with us at your place of work, we are happy to develop this with you as a breakfast, lunch session or evening event – please get in touch with any of the AlgoMe Community team for more info.