Former Goldman Sachs executive says Bank of America needs better financial technology methods
Sheila Patel, the former head of Goldman Sachs Asset Management, said that if the banking industry is to keep up with the pace of innovation in fintech companies, it needs to take a different approach to building new technologies.
Increasing competition from start-ups has contributed to Increase spending Patel told the Financial Times that among the top US banks, they can obtain better services through acquisitions or cooperation with technology companies instead of focusing on internal construction.
“Sometimes think tanks and incubators work, but sometimes the best ideas come from outside your environment,” she said. “Financial institutions of all sizes, especially large financial institutions, need to find ways to innovate outside their walls, because they are moving in this direction anyway.”
Patel, 52, has worked in the banking industry for 30 years before announcing his retirement from the post of chairman of the $2 trillion asset management department at Goldman Sachs in December. After holding various leadership positions in Europe and Asia, Patel gained fame by betting on emerging markets that others considered too risky, and was named one of the most influential women in the banking industry by Fortune magazine .
This month, she will join B Capital, a venture capital firm supported by the Boston Consulting Group, which provides funding for technology companies that aim to modernize traditional manual and bureaucratic industries, such as banking, which is known for its cumbersome Notorious for legacy technology systems.
“We spent a lot of time talking about our physical infrastructure. Anyone who flies into any U.S. airport or driving on any road thinks we have some work to do, but our commercial digital infrastructure also needs investment,” she said .
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Raj Ganguly, one of the co-founders of B Capital, said that most of the innovation in the financial industry takes place outside of the United States. Generally speaking, the company distributes its 3.5 billion US dollars of capital equally in the United States and abroad, but in the financial sector, about 80% of its investment is abroad, mainly in Asia.
“American fintech entrepreneurs are basically building things on the existing very good track,” Ganguly said. “Fintech entrepreneurs in India or Indonesia, they are building everything.”
Patel said that the challenges of financial innovation are reflected in the healthcare sector, which is another key area of B Capital-and Patel personally, who was completing cancer treatment during the coronavirus pandemic last year.
“Without some telemedicine technology, how would I talk to my doctor? As far as my treatment process is concerned, how would I know what to do?” she said. “There are many things that can improve efficiency.”