February 2011: Time to Get with the Program

There are two types of technology vendors currently operating in the financial services industry: those that have come to the realization that their primary raison d’etre is service and not technology. And there are those that have not.
This argument might sound a bit counterintuitive, but upon closer scrutiny, its logic is difficult to unpick. And here’s why: Technology in the financial services industry has, by and large, become commoditized, to the extent that it no longer guarantees vendors a competitive advantage. Sure, it’s required to enter the game, but it won’t, by itself, win you customers.
Closely coupled with this notion is the growing realization that end-users’ consumer habits have changed over the last decade. Firms are now driven by factors other than purely functional ones when it comes to arriving at their purchasing decisions. Clearly, price is one factor, but it’s not the most important—not by a long shot. The single most important factor driving “buy” decisions is the level of service offered by the vendor. But, it seems, not everyone gets this.
When you factor in the incestuous nature of the various constituents that collectively constitute the financial services industry, only then do you get an inkling of how influential the information is that is passed between market participants, based primarily on the levels of service they have experienced through their vendor relationships.
In short, people talk, and, as a technology vendor, you do not want them talking about your poor levels of service, regardless of how good your underlying technology might be. Conversely, if you’re able to develop a reputation for delivering on your promises—especially when it comes to implementations—being amenable, approachable and generally easy to live with, you can probably lay off your entire marketing department secure in the knowledge that your happy clients will do a more-than-acceptable job of managing your marketing functions for you.
And yet there are still an appreciable number of Luddite-esque technology vendors that assume their products alone will guarantee their future. It did in the past, right? Yes, that may be, but the 2011 operating environment is so far removed from that of four years ago, that comparisons between the two are pointless. Most technology vendors acknowledge this fact, but for those that haven’t, maybe they will finally board the service train this year.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
The future of trading takes shape
The future of trading across the capital markets and the drivers likely to shape the ever-evolving industry
On GenAI, Citi moves from firm-wide ban to internal roll-out
The bank adopted three specific inward-facing use cases with a unified framework behind them.
FactSet-LiquidityBook: The buy-side OMS space continues to shrink
Waters Wrap: Anthony spoke with buy-side firms and industry experts to get a feel for how the market is reacting to this latest tie-up.
Examining Cboe’s lawsuit appealing SEC’s OEMS rule rejection
The Chicago-based exchange has sued the regulator in the Seventh Circuit Court of Appeals after the agency blocked a proposed rule that would change how Silexx is classified.
Lucrative market data deal with LSEG fuels Tradeweb’s record quarter
The fixed-income trading venue realized gains from its 2023 deal with the London Stock Exchange Group, amid soaring revenues from market data providers industry-wide.
Is overnight equities trading a fad or the future?
Competition is heating up in US equity markets as more venues look to provide trading from twilight to dawn. But overnight trading has skeptics, and there are technical considerations to address.
We’re running out of datacenters! (But maybe AI can help?)
The IMD Wrap: Datacenter and cloud adoption is being pushed to its limits by AI. Will we simply run out of space and power building AIs before AI figures out how to fix it?
Regis-TR and the Emir Refit blame game
The reporting overhaul was been marred by problems at repositories, prompting calls to stagger future go-live dates.