Presentation at IBRC Superannuation Funds Back Office Innovations 2017 Forum looking at the potential impact of emerging technologies on back-office teams. Blockchain, artificial intelligence, robotics, automated data entry and data mining are some of the big technological trends set to radically disrupt the way the back-office teams of superannuation funds and their service providers do their jobs in the not-too-distant future.

1. Future of Investment Operations &
Technology Innovation
IBRC SFBO 2017
Stephen Huppert
@stephenhuppert

2. "We don't like their sound, and guitar music is on the way out"
Decca Recording Co. rejecting the Beatles, 1962

6. Artificial Intelligence Genomics
Connected Home Sensing – Internet of Things
Crypto-Currencies
Robotics3D Printing
Drones
Mobile Payments
Oculus RiftWearables
Electric and Connected Cars
EX P O N EN TI A L TECH N O LO G I ES

7. A M Y RIA D O F D IS RU P TIV E ID EA S
A RE N O W BECO M IN G A REA LI TY

8. Blockchain explained
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9. Blockchain is a distributed ledger of transactions allowing collective
bookkeeping in an immutable ledger
§ Central authorities transfers actual value
between two parties
§ Multiple intermediaries and record-keeping
are required to facilitate transfer of assets and
create trust
This
image
cannot
currently
Current System Blockchain System
§ Distributed network of computers (nodes) that
maintains a shared source of information
§ Transaction data is immutable
§ Trust is enabled by cryptographic algorithm
A blockchain is a record, or ledger, of digital events — one that’s “distributed” between many different parties. It can
only be updated by consensus of a majority of the participants in the system. And, once entered, information can never
be erased. The blockchain contains a certain and verifiable record of every single transaction ever made.

11. “Artificial intelligence can help people make faster, better, and
cheaper decisions. But you have to be willing to collaborate with the
machine, and not just treat it as either a servant or an overlord.”
Anand Rao PwC Innovation Lead, Analytics

12. Robotic process automation combines artificial
intelligence including natural language processing,
machine learning, automatics, and machine vision
with automation

14. Yet despite its potential, smart processing has not fundamentally changed either
banks’ economics or customers’ experiences
Source: BCG analysis

17. Platform As-A-Service Capability Sharing
Common models of the new breed of process externalisation providers
Process externalisation
Enabled by technological advancements, external service providers are
growing and building a track record of success in driving efficiency.

18. Capital Markets
Tech Market Map

21. Highest function costs and opportunity to reduce costs
Source: EY survey of asset manager COOs

22. Legacy thinking, not legacy systems,
is the biggest threat to the financial industry

23. This image cannot currently be displayed.

24. "Investor concern over the threat of new
technologies is overstated.”
Blockbuster analyst report, 1999

25. References

26. Stephen Huppert
@stephenhuppert