Interview
Talks at GS - Adena Friedman: The Future of FinTech
- Nasdaq operates as a US cash equities exchange and provides technology infrastructure to over 85 markets globally.
- Dina Dubrow identifies five primary technology trends reshaping the industry:
- Mobile: Enhancing individual investor market access.
- Cloud Computing & Data: Enabling the processing of massive data sets for decision-making rather than instinct alone.
- Machine Intelligence: Utilizing deep learning and natural language processing to refine firm strategies and risk monitoring.
- Blockchain: Offering applied solutions for settlement efficiency, ownership transfer, and tracking.
- Quantum Computing: A future horizon capability expected to exponentially increase market interaction sophistication.
- Strategic Decisions and Infrastructure:
- Nasdaq is actively building its next-generation market technology solution as a completely cloud-enabled platform to improve scalability and infrastructure management.
- While the cloud addresses immediate infrastructure needs, machine intelligence is predicted to have the most significant long-term impact on the industry.
- Blockchain is viewed as the primary driver for future efficiency in market settlement and ownership tracking.
- Private Markets Strategy:
- The NASDAQ Private Market was launched to provide episodic liquidity for early investors and employees, addressing the shift in shareholder limits (from 500 to 2,000) established by the Jobs Act.
- The strategy accommodates companies staying private longer or being acquired by private equity, viewing the corporate lifecycle as a progression between public and private states rather than a loss of business potential.
- Services include communication tools to help companies mature before going public, with an expectation that private equity-owned firms typically return to the public market after approximately five years.
- Leadership Philosophy on Risk:
- Decision-making in business and career transitions requires balancing available information with gut judgment, as unknowns are inevitable.
- Dubrow advocates for accepting roles or opportunities with incomplete knowledge, trusting that readiness can be developed after assuming the responsibility.
- The underlying logic is that if an organization offers an opportunity, they believe the candidate is ready to learn and succeed.