Tell us about Next Gate Tech and its solutions.
Next Gate Tech is a fintech, active in the fund and asset management industry. We offer data management, which involves the collection, harmonization and enrichment of data, and then analysis based on this data, applying different methodologies. This allows our clients to automate their processes and make their business more efficient.
The fund industry is made up of the front office, with investment decisions, research and trading, and then the middle office and back office, with operations and calculations, and the regulatory side. Working in this industry in Luxembourg, I realized the complexity of this environment, but also the gap in technological levels between the front office, and its advanced technologies, and the middle and back office, and its manual processes, with the use of Excel. . We had the idea of providing a data harmonization solution to open the door to a more technological implementation.
Why is digitization a must for the fund industry?
Since the 2008 financial crisis, an increasing number of directives call for more transparency and accountability. The asset management sector is also experiencing significant margin compression, due to the growing market share of index funds, which compress management fees, which are the very business model of the funds, but also due to regulatory pressure. Finally, as in all industries, end customers have more and more requirements.
These three axes make technology like ours the answer to the problems of an industry where the middle and back office lag behind the front office, which has already undergone its transformation.
How are cloud technologies an essential part of this transformation?
A solution like ours must ingest a large amount of data, because the average client manages dozens of portfolios, where financial data is added every day. If we want to incorporate methodologies based on machine learning, we must include a time value to train models, detect anomalies, etc.
All this is possible thanks to the implementation of SaaS solutions. Regulators are aware that the industry needs to go digital to meet their requirements, so they have established regulatory frameworks that allow the use of cloud solutions.
What led these companies to use fintechs?
The amount of data is impossible to process with just a few people and Excel files. And then these companies refocused on their core business and preferred to forge alliances with smaller, more specialized companies.
This content was produced with SCRIBEO. The BFMBUSINESS editorial team was not involved in the production of this content.
Source: BFM TV
