Hedge funds keeping eye on market’s Fintech obsession

Financial intermediaries experimenting with technologies will have significant impact on the hedge fund industry in 2016 according to new research.

A report published by Indus Valley Partners entitled “Mega Trends Impacting the Hedge Fund Industry 2016” suggested that intermediaries are running innovation labs, experimenting with blockchain and buying fintech startups out of fear of being ‘Uber’d’.

In other findings, the report also suggested that the need for increasing analysis of data due to enlarged volumes of online interactions and transactions. Additionally, it predicts a secular shift by technologies to increase transparency and reduce transaction costs and operational errors.

“The top 3 trends we have identified for 2016 are all interrelated and represent a shift away from incumbent players reliant on largely analogue business models, those dependent on capital, people and specific locations, to a new set of digital disruptors,” said Gurvinder Singh, CEO of Indus Valley Partners.

“These disruptors are using business models that have been built ground-up on big data and AI/machine learning technologies, enabled by cloud/mobile platforms and offering rich, deeply intuitive user experiences on-line,” Singh added.