A New Niche for Practitioners
As decentralized and distributed services and products continue to enter the marketplace, and the disruption that these tools bring are felt throughout the market and by different actors it will also be important for practitioners and organization to obtain the appropriate mindset. There is a phrase used in the accounting profession, but is one that can apply to different subsets and areas of the financial services profession as well; riches are in the niches (McCausland 2000). Generalized services, lower level tasks, and virtually every aspect of workplace activity that can be automated will be automated and this will invariably cause margin compression, fee restructuring, and the importance of generating differentiated services. This is already underway, and the tried and true solutions of investing in more automation while also reducing employee headcount will simply not be sufficient to compete effectively going forward. Organizations are large and sophisticated as BlackRock, Deloitte, and numerous other firms in other industries are currently dealing with these forces with a combination of investment, hiring of different employees, reduction of current headcount, and launching of digital solutions. That is well and good, as well as being absolutely necessary, but a different tactic will be required going forward.
KeywordsNiche practitioners Advisory services Technology landscape The grand bargain Data privacy KYC AML
- Ball, J. (2017). R3 to work with Intel to boost data privacy. Global Investor, 76.Google Scholar
- Kahan, S. (2001). Prospecting for niches. Practical Accountant, 34(2), 18.Google Scholar
- Lombardo, C. (2005). Serving a niche market. Accounting Technology, 21(2), 16–21.Google Scholar
- McCausland, R. (2000). Vertical value: The lure of niche accounting. Accounting Technology, 16(8), 56.Google Scholar