People, Process and Platforms in FinTech

Welcome to another enlightening episode of FinTech Focus TV, powered by Harrington Starr, the global leaders in financial technology recruitment. This episode was recorded live at the FIX Americas Trading Conference, featuring a special guest, Ila Eckhoff, Board Chair at Cerebral Palsy Foundation and MD - Industry and Counterparty Management at BlackRock Inc. Hosted by Toby Babb, this conversation dives deep into the critical aspects of financial services, emphasizing the importance of people, processes, and platforms.

About Our Guest – Ila Eckhoff

Ila Eckhoff brings over 40 years of experience in the financial services industry, with a significant tenure at BlackRock. Recently retired from her role at BlackRock, Ila has taken on the position of Board Chair at the Cerebral Palsy Foundation. Her passion for people and improving financial services outcomes shines through in this episode.

Introduction to Financial Services

Ila starts by highlighting the mission of financial services: to create better financial outcomes. Regardless of whether you're on the buy-side, sell-side, or working for a custodian bank, this mission remains central. She stresses that achieving this requires a perfect combination of people, processes, and platforms.

People, Process and Platform in FinTech: A Deep Dive

1. People: The Core of Financial Services

   • Ila emphasizes that half of her job throughout her career was about managing and developing teams. She believes that without the right people who feel heard and connected, the execution part of financial services falters.
   • She underscores the importance of trust within the industry. Building trust between managers and staff is crucial, as it forms the foundation for effective teamwork and successful financial outcomes.

2. Process: Ensuring Efficiency and Effectiveness in FinTech

   • Processes are essential for financial services to function smoothly. Ila draws a parallel to owning a Lamborghini but not knowing how to drive it. Similarly, in financial services, the best technology is futile without well-defined processes managed by competent people.
   • She explains that processes should be designed to minimize friction in the system, from the moment a portfolio manager has an idea to the settlement at a custodian bank. Efficient processes lead to better services for both employees and clients.

3. Platform: Leveraging Technology for Success in Tech

   • Ila discusses the significance of platforms in financial services. She notes that while technology is critical, it must be integrated into well-established processes and managed by skilled people.
   • The FIX technology, which aims to reduce friction in the trading process, is highlighted as an example of how platforms can enhance efficiency and service quality.

The Role of Trust and Relationships in Financial Technology

Trust and relationships are the bedrock of financial services. Ila and Toby discuss how firms often focus more on execution than on people, which can be a mistake. Building strong relationships within and outside the organization is key to long-term success.

Panel Discussion: People – The Fuel of the FinTech Industry

Ila shares her thoughts on the upcoming panel discussion titled "People: The Fuel of the Industry." The conversation highlights how focusing on people can lead to thriving businesses, even in times of industry pressure and change.

Compensation and Behavior Change in FinTech

To drive the right behaviors, Ila advocates for changing the compensation structure. She suggests that managers should be rewarded not only for execution but also for effectively managing and developing their teams. This dual focus ensures that organizations are not just achieving short-term goals but also building a sustainable future.

The Importance of Relationship Currency in Financial Services

Ila talks about the importance of relationship currency, which appreciates over time, unlike technical skills that depreciate. Building strong relationships across the organization is crucial for career advancement and organizational success.

Diversity and Inclusion in FinTech: A Business Imperative

Ila is passionate about diversity and inclusion, emphasizing that diverse teams drive innovation and profitability. She points out that firms with diverse talent are 35% more profitable. Hiring diverse talent is not just about ticking boxes but about creating a more innovative and successful organization.

Hiring People with Disabilities in FinTech

Ila discusses the importance of hiring people with disabilities, who make up 20% of the population. She highlights that employing people with disabilities brings grit and resilience to the workforce, qualities that are invaluable in the financial services industry.

The Recruitment Challenge in Financial Services

1. Attracting Top Talent in FinTech
   • Toby and Ila delve into the complexities of recruiting in the financial services sector. Ila emphasizes that attracting top talent requires a clear understanding of what potential employees value. Competitive compensation packages, career development opportunities, and a supportive work environment are key factors that make an organization attractive to prospective hires.
2. The Role of Culture in FinTech Recruitment
   • A strong company culture is vital for attracting and retaining talent. Ila notes that organizations with a positive, inclusive culture are more likely to attract diverse talent. She stresses that creating a culture of trust and collaboration not only helps in recruitment but also in retaining top talent.
3. Building a FinTech Talent Pipeline
   • Ila discusses the importance of building a robust talent pipeline. This involves not only attracting new talent but also developing existing employees. Providing ongoing training and development opportunities helps in preparing the next generation of leaders within the organization.
4. FinTech Recruitment Strategies
   • The discussion highlights various recruitment strategies that can be employed by financial services firms. These include leveraging technology to streamline the hiring process, using data analytics to identify talent trends, and building relationships with educational institutions to tap into emerging talent pools.
5. The Impact of FinTech Recruitment on Business Growth
   • Effective recruitment is crucial for business growth. Ila and Toby discuss how hiring the right people can drive innovation, improve customer satisfaction, and ultimately lead to better financial outcomes. A strategic approach to recruitment ensures that the organization has the talent needed to navigate industry challenges and capitalize on opportunities.

Conclusion: Building a Better Future in Financial Tech

The conversation wraps up with a focus on building a better future for financial services. Ila reiterates that the industry's success hinges on the perfect combination of people, processes, and platforms. By fostering trust, building strong relationships, and embracing diversity, financial services firms can achieve better outcomes for their employees and clients.

Final Thoughts

This episode of FinTech Focus TV offers invaluable insights into the financial services industry, with a particular focus on the human element. Ila Eckhoff's extensive experience and passion for people make this a must-listen for anyone in the industry. Tune in to learn more about how focusing on people, processes, and platforms can drive success in financial services.

Call to Action

For more episodes of FinTech Focus TV and to stay updated with the latest in financial technology recruitment, visit the Harrington Starr website. Download the latest issue of the Financial Technologist magazine and explore the top 1% workplace awards. If you're looking to grow your team or find new opportunities in financial technology, get in touch with Harrington Starr today.