US Elections and Markets - What Comes Next?

Will the upcoming election shape the future of FinTech, or are we looking at something much bigger?

In this episode of FinTech Focus TV, host Toby Babb welcomes Brad Levy, CEO and Board Member at Symphony, a prominent technology company that specializes in secure communication and collaboration solutions for financial services. This conversation dives deep into the transformative effects of technology within the finance sector, particularly in light of recent changes in work culture, advancements in artificial intelligence, and evolving regulatory environments.

The Journey of Symphony: A Decade of Innovation

As the episode begins, Brad reflects on the journey of Symphony, stating, "It’s been 10 years now as a company Symphony, and that includes Cloud9, which was started about the same time we were." He elaborates that their messaging and voice analytics platform, which is encrypted and distributed in the cloud, has taken a decade to develop fully.

Brad emphasizes that despite appearing futuristic, their technology has finally started to gain traction. He notes, "The industry struggles, but it’s an exciting time, and our velocity is really starting to increase in a meaningful way." This comment sets the tone for the conversation, showcasing Brad's optimistic perspective on the current landscape of the financial technology sector.

Adapting to the New Normal: Remote Work and Technology

The discussion shifts to the broader implications of the pandemic and the accelerated adoption of technology in the finance sector. Toby recalls discussions from previous events where the impact of AI was heavily debated. Brad affirms this trend, explaining how the recent move to remote work has acted as a catalyst for technological innovation. "The move to work from home, move to AI, move to automation, and mobile technology are all tailwinds for us," he remarks.

This sentiment highlights the challenges faced by financial institutions in adapting to new technologies and work environments. Brad points out that these changes are not merely a response to the pandemic but represent a significant shift in how organizations operate.

The Importance of Embeddability in FinTech Solutions

Continuing the conversation, Brad introduces the concept of Embeddability, which Symphony recently launched. This feature allows Symphony's platform to integrate seamlessly with other applications used by financial professionals. He states, "Our embeddability came first, and now we're really ready to deliver these AI outcomes in people's workflows in small, incremental ways." This approach indicates a substantial shift in how technology is utilized, focusing on enhancing existing workflows rather than introducing entirely new applications.

Toby and Brad discuss how this change aligns with the broader trends in the financial services sector, where firms are increasingly looking to streamline their operations and improve efficiency. By embedding technology within existing systems, organizations can minimize disruptions while maximising productivity.

Navigating the US Political Landscape: Impacts on Financial Markets

As the conversation progresses, Toby and Brad delve into the current political landscape and its implications for financial markets in the United States. Brad provides his insights on the upcoming election cycle, suggesting that while it may garner significant attention, its long-term impact could be minimal. "If everybody’s talking about it, you should probably look past it," he advises, emphasizing the importance of focusing on broader trends rather than getting caught up in momentary distractions.

He elaborates on this point, noting that while elections can create volatility, they are often just one piece of a much larger puzzle. Brad states, "The theme of today is going to be that election, but then into the bigger macro... we care about it at Symphony. Our clients are global." This global perspective underscores the necessity for financial institutions to remain vigilant and adaptable in the face of political changes.

The Interplay Between Politics and FinTech Market Behavior

Brad continues to connect the dots between political events and market behaviour. He explains that regulatory mandates, such as T+1 settlements, are closely tied to the political climate. "That was determined by the regulator who was on the more democratic side for the last four years," he notes, showcasing how political decisions directly influence market dynamics and regulatory frameworks.

Toby and Brad discuss the potential consequences of this interplay, highlighting the need for financial institutions to be proactive in their responses to regulatory changes. Brad emphasizes, "If you want to automate the equity IPO market and there are not a lot of equity IPOs, maybe you shouldn't be targeting that as a challenge." This comment illustrates the importance of aligning technological advancements with market realities to ensure successful outcomes.

Finding Opportunities Amidst Challenges in FinTech 

Throughout their conversation, Toby and Brad explore the concept of optimism in the face of adversity. Brad acknowledges the challenges present in today's financial landscape but maintains a positive outlook. "Consistency is helpful and good. The alternative is paralysis," he states, encouraging listeners to view obstacles as opportunities for growth and innovation.

This perspective is particularly relevant as financial institutions navigate the complexities of the current market. Brad emphasizes the importance of recognizing that even during challenging times, there are always avenues for progress and improvement.

Generational Thinking and Long-Term Perspectives in the Financial Sector

As the discussion progresses, Brad shares his views on generational thinking and its relevance in the financial sector. He describes himself as a "generational thinker," emphasizing the need to consider long-term cycles when assessing market dynamics. "I believe in 20-year generation cycles," he explains, noting that significant changes often take decades to materialise fully.

Brad's insights into generational shifts highlight the importance of looking beyond immediate trends to understand the larger forces shaping the financial landscape. This approach encourages financial professionals to adopt a long-term perspective, considering how their decisions today may impact the industry over time.

The Power of Collaboration in FinTech

As the conversation shifts, Brad discusses the critical role of collaboration within the financial technology sector. He states, "Alone, we’re pretty much dead. Together, as a fixed community, we can do quite a bit." This sentiment underscores the value of community and partnership in driving innovation within the industry.

Brad elaborates on the importance of moving away from a siloed mentality, where organizations compete for resources and information. Instead, he advocates for a more collaborative approach, where companies share knowledge and work together to address common challenges. "We’re moving much more into a collaborative play," he asserts, emphasizing that this shift is crucial for fostering innovation and growth.

The Impact of Technology on Financial Services

The conversation then transitions to the rapid pace of technological innovation within the financial services sector. Brad points out that we are witnessing a convergence of various technologies, including digital assets, blockchain, and cloud computing. "There’s 20 things converging now that are going to make this a super cycle of change for any one human," he remarks.

This comment highlights the transformative potential of these technologies and their ability to reshape the financial landscape. Brad emphasizes the need for organizations to remain agile and adapt to these changes to capitalize on emerging opportunities.

Understanding the Macro Landscape: A Strategic Approach

As the podcast nears its conclusion, Toby asks Brad for his key takeaway for listeners. Brad succinctly summarises his thoughts: "Understand the big macro cycle well enough to not get decapitated." He stresses the importance of balancing immediate concerns with a long-term vision, advising leaders to "pay attention to the next two weeks and the next quarter."

This advice underscores the necessity for financial professionals to remain strategic in their approach, recognising that incremental changes are essential for achieving sustainable growth. Brad's insights encourage listeners to be mindful of the larger trends at play while also addressing immediate challenges.

The Future of Symphony and Collaborative Partnerships

As they wrap up their discussion, Toby and Brad reflect on the exciting future ahead for Symphony and the broader financial technology landscape. Brad highlights the significance of partnerships and community in driving innovation, stating, "We can be an alert up front and you never see us again, or we could be three hops of 20." This perspective captures the collaborative spirit that is essential for navigating the complexities of the modern financial landscape.

He concludes by reiterating the importance of embedding technology within existing workflows and fostering a culture of collaboration. "Our tech stack had to evolve to something that could be easily embedded," he explains, reinforcing the idea that organizations must prioritise adaptability to thrive in a competitive environment

Conclusion: Insights for the Future of FinTech

In this thought-provoking episode of FinTech Focus TV, listeners gain valuable insights from Brad Levy that illuminate the path forward for the financial technology sector. From embracing technological advancements to fostering collaboration and understanding the macroeconomic landscape, Brad's perspectives serve as a guide for navigating the challenges and opportunities that lie ahead.

Whether you’re a seasoned professional in the FinTech industry or new to the field, this episode provides a wealth of knowledge and inspiration. Tune in to discover how the convergence of technology and community is reshaping the financial landscape and what it means for the future of innovation in finance.