Joining the disruption in the Asset Management Industry How to evaluate new technologies and implement new ideas like a start up company

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1 Joining the disruption in the Asset Management Industry How to evaluate new technologies and implement new ideas like a start up company Kyle Kung, PhD GX Innovation Lab State Street Global Exchange September 5 th, 2016

2 Disruptive Innovation in Financial Services 1 Key Themes Emerging platforms and decentralised technologies provide new ways to aggregate and analyze information. Automation through advanced algorithms and computing power offer cheaper, faster, and more scalable alternative products and services Streamlining or eliminating traditional institutions role as intermediaries, and offering lower prices and / or higher returns to customers Access new data sets, such as social data, that enable new ways of understanding customers and markets New entrants with deep specializations are creating highly targeted products and services, pressuring traditional endto-end financial services model to unbundle 1. of_financial_services.pdf Greater access to previously restricted assets and services, more visibility into products, and control over choices, as well as the tools to become prosumers

3 Technology: The enablers of disruption Technology that drive your current platforms Technology that drive your future platforms Microsoft.net C# Oracle C++ Microsoft SQL Server MySql Data Center Server Computing Spark Hadoop Python Ruby JavaScript Cassandra MongoDB HBase Big Data Frameworks High level programming language Non relational columnar databases CoreOS Ubuntu Docker Ruby on Rails Django Node.js Informatica Mulesoft Linux operating system Web application framework Data integration framework Microsoft Windows Java Cloud Computing Shared computing and storage resources over the internet GPU Computing Computing on graphics processing units for increased processing power over CPUs

4 Don t just make it about the technology Identify the pain points Technology Pool Implement the solution Trade settlement time is taking too long My portfolio holdings are not transparent at the issue level Not enough investment functionalities through mobile devices Produce a working prototype product or process as quickly as possible Gather feedback from all impacted staff Implement feedback, improve the Alpha Hard keeping up with regulatory reporting processes Gather feedback from clients Understanding the impact of my investments to macroeconomic events Unable to process large amounts of unstructured data for better client insights Deep learning Data and reporting systems Implement feedback, improve the Beta Plan on process replacement or product rollout

5 Implementing innovation

6 Getting into the innovation mindset Establish a culture of innovation Have a startup mentality Don t need to start by building one of these Focus on a target or pain point Work as a committed team Get senior management involvement in reducing red tape Limited runway in funding and management support But start building a team around one of these Don t be afraid to fail - but if going to fail, fail quickly

7 Alpha delivery timeline Technology Selection, UX design, Business Logic, Development Idea Generation Clickable Mockup for Main Features Business Logic Coding Process Review and setup Project Planning Requirement Review Meeting Wireframes Technology Selection Business Logic Review Meeting Testing Initial Meeting User Story Sketch Real User Feedback WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6

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