Alternative investments industry must innovate say leaders

Technology's impact on the alternative investment industry was a central theme at the Cayman Alternative Investment Summit, held earlier in February. Attendees were asked for their views on the industry's challenges, and innovation ranked as the leading priority. Respondents were asked about the priorities for chief executives and C-suite executives, and two-thirds named investing in innovation as the top priority, far outpacing building trust with employees at 19%, evaluating workplace policies at 9%, and growing jobs and wages at 6%.

The survey identified automation and machine learning (45%) and blockchain (38%) as the two biggest technology impacts on the alternatives sector. Respondents believe blockchain may come to dominate investment portfolios in the future.

Chris Duggan, Director of CAIS and VP of Business Development for event sponsor Dart, said the industry is experiencing a dramatic technological shift. He said financial services firms will need to incorporate innovation into their investment processes and business operations or risk falling behind their peers. Duggan added that the survey results show the alternatives industry has reached a tipping point in recognizing the impact of technology on the future of global markets.

The article notes that alternative investments are predicted to gain ground over the next five years. Respondents also identified other challenges facing global markets beyond technology, though the source material does not detail them.