There's a Storm Coming: Fintech Awards Recognize Innovators

Apple-Pay is changing the way we buy stuff, Uber is transforming the way we get a ride, the "sharing economy" is transforming everything else. It seems that everywhere you look, unconventional entrepreneurs are disrupting the business world, much to our benefit. Wall Street, however, has been immune to the onslaught of disruptive technology that has swept every other corner of the business world.

The financial services empire built by men the likes of Charles Schwab, Edward Jones, Marcus Goldman and others has been a stronghold of conventional thinking and traditional execution despite the technological disruption all around them. All of that is about to change. Even the hardest rock is cut deep and wide by the persistent erosion of the smallest river and that is exactly what has been happening in the financial services industry. The walls are coming down and very few people outside of the Wall Street Fortress really see it coming.

Historically the technological advances in financial services have benefited the major institutions that manage most of America's money. The consumer may benefit indirectly from these technological advances, but only on the fringes.

The behemoth banks and brokerage houses have skillfully positioned themselves as the "middle man" in possession of information and expertise. The consumer could not afford, and therefore did not have access to the big data required to make complex investment decisions, so they left it to the "middle-man" and paid him well for the privilege.

Change is afoot! The surge in technology over the last few years has made it possible to manage and analyze big data in ways never seen before. It has opened new avenues of attack for entrepreneurs who are willing to engage in unconventional thinking and unprecedented execution. The disruptive revolution is at the gates of the financial establishment's castle. On April 8th I attended the inaugural Benzinga FinTech Awards in New York with Susan White, Director of Business Development for BetterTrades. While Benzinga hosted the gala event, they probably deserve the award for "Most Disruptive Catalyst."

 Under the leadership of CEO Jason Raznick and president Kyle Bazzy, Benzinga.com has become the go-to source for accurate, timely and actionable financial information, news, information and insight for traders and investors. Jason and Kyle have managed to break into the ultra-competitive and extremely well-defended industry through unconventional thinking, exceptional leadership and focused execution. They embody the tidal wave of fundamental change that is coming to Wall Street. 

The companies that were nominated for the Fintech Awards were a fascinating mix of small startups from all over the country. Also represented were a (very) few established players who seem to recognize that change is coming and they can be part of it, or be swept aside by it.

Innovation is what one would expect from a startup and these companies did not disappoint. It is not the technology itself but rather the application of the technology that separates these dynamic young companies from their older, stodgy peers.

More than 160 companies were considered and the most creative, innovative and disruptive were recognized at the awards ceremony. The common theme underlying most of the companies seemed to be a genuine effort to erode the need for the middle man and to use technology to bring investing decisions directly to the end user, the retail consumer (that's you).

Imagine building a diversified investing portfolio based on a "theme" or motif. Think of the entire supply chain that goes into building a smart phone. Now you can research and build an investment portfolio based on that supply chain. The technology locates the candidates, lets you adjust portfolio structure and actually execute right from the platform. No advisor to pay, no hidden fees eating away at your returns. It's a startup called "Motif Investing" and they won the award for "Most Disruptive."

Don't have money to invest in a portfolio? Yes you do, you just don't know it. A small and fascinating company called "Acorns" helps you find investing capital, in your own daily transactions. By "rounding up" all of your credit and debit card purchases and depositing that "round up" money into a savings or investment account, you begin to amass the capital you need to invest. They won the "Penny Saved is a Penny Earned" Award.

Want to duplicate what the Hedge Funds are doing? Better check out "HedgecoVest." They won the "Alternative Investment" award.

Maybe you're more into real time options screening available directly to the retail trader. Yep it's out there!

Looking to tap into social media and use the "crowd" to find trade and investment ideas?  "Vetr" won that category. No matter what your interest, these dynamic, innovative and creative companies are the future of the financial services industry. They represent the leading edge of a massive storm that is bearing down on the Wall Street establishment and will bring big data and the power of technology right to your doorstep. 

(Written by Bill Corcoran, CEO of BetterTrades)