So what's wrong about using old and (relatively) outdated technology from around 1996 in money management? Well, one thing for sure, it shows you aren't cool and hip. Sure there are all kinds of new fancy pantsy tech gadgets for wealth managers, BUT if you are still managing money after the last twenty years maybe you shouldn't tinker too much. Like how do you feel about the new Linkedin updates? Yeah, the new 'toys' are cool but sitting next to a robot seems...............spooky?

(Bill Taylor)

"...A few months ago, at a conference with 60 of the world’s largest pensions and sovereign funds, I asked the audience, “How many of you have added a new piece of technology into your investment decision process over the past 12 months?” Fewer than ten had done so.

As it turns out, a list of today’s dominant investment technologies reads like it’s from the 1990s: Excel, PowerPoint, e-mail, Bloomberg, Yahoo Finance, mobile phones, messaging applications, and databases such as Oracle. All of these technologies — literally all — were available in 1996. The investment community is not utilizing the technology of tomorrow or even today. It’s stuck with the technology of yesterday.

Why? I have some ideas. And my explanation as to why most Giants are mired in the previous century has four key propositions rooted in the behavior of four key stakeholder groups:

Institutional investors: In 2016, I gave a keynote at a conference for nonprofit investment organizations. Of the 300 or so in the room, 76 percent indicated that they believed their world would be upturned in the years ahead by technology start-ups. In light of this, how many do you think had some sort of a formal policy in place to track start-ups and technologies that could change their business? Zero.

Asset managers: Given the above, most Giants are totally reliant on their service providers to invest in the latest technologies that can deliver higher investment performance. As a result, the hot new tech is built (or at least used) by people who have no interest in sharing it; they instead leverage it to extract higher fees. Most of the really valuable investment technology seems to go into black boxes behind closed doors or secretive asset management businesses, purposely hidden away by organizations that have no interest in its widespread adoption. Rather, they seek widespread subscription to their funds..."

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