Introducing broker-dealers (IBDs) and registered investment advisors (RIAs) are used to operating in a changing professional landscape. Advances in technology, going as far back as the development of the telegraph and the first transatlantic wires, which opened global markets, have driven change in the financial services industry. In addition, rapidly evolving technology, consumer demand, regulatory updates, and mergers and acquisitions are also driving change in our industry.

Cybercrime is on the rise. According to research compiled by Varonisi, a leading cybersecurity company, financial services are big targets for hackers looking to steal personal data and assets. Around 10% of data breaches affected the financial industry, and at an annual cost of over $18.3 million, it accounts for the highest costs across sectors.

Financial institutions tend to spend a significant amount of money on technology. The UBS Evidence Lab collected financial spending data from 175 banks and found that more than half of respondents spend less than $100 million on technology annually. However, 88% of respondents with over $100 billion in assets, who already have a larger tech budget than smaller institutions, expect their technology spend to increase significantly over the next three years. To put it in perspective, JP Morgan Chase planned to spend $11.4 billion on technology development in 2019ii.

To understand how an API works, consider how the internet functions. All the information and programs that you can find on the internet are hosted on remote servers all over the world. When you search for something, your browser pulls the information from the hosting server, sending the HTML code to load the page for you to see.

2020 has been a tumultuous year, to say the least. A global pandemic led to unemployment levels that haven't been seen since the 1940s. While we see signs of economic recovery, these issues still contribute to a sense of instability in the financial world.

Digital communications tools enable us to exchange information and stay connected despite geographic distance. With videos and interactivity, we can continue to engage with clients, contacts, and colleagues, but there’s no true substitute for spending time with someone in person, especially when it comes to negotiating contracts and closing deals.

Adapting to clients’ ever-changing needs and expectations can be challenging. To deliver what clients are looking for today, some RIAs are choosing to adopt a holistic business strategy and offer services such as banking and advanced financial planning.