Andy Heiskell: Technological disruption isincreasingly important within the financial services sector.
We think back to 15 to 20 years ago when thefirst Internet banks came into existence and then quickly failed.
This is an industry and a sector that, historically,has not been one of a significant amount of innovation, but the time has come.
Most interestingly, if we look back, maybe,five years ago, there was a significant thought that technology would disrupt or maybe disintermediatefinancial services, that it would be a tech company or a software company that would maybedisplace a bank or an insurance company.
Interestingly, if we roll forward to today,there's much more of a partnership between these technological services providers andthe financial service companies.
The tech companies have the technology, butthe financial companies have the customers, and they've both realized that they need tobe partners together to work with and to service these companies or service the customers.
We found, actually, a lot of interesting investmentopportunities of these companies that are marrying and partnering between the financialcompanies and the technology companies, and it's whether it's, maybe, the financial companythat's using the technology to leverage faster customer growth, or better customer interaction,or higher expense efficiencies or synergies.
In some cases, we're finding companies thatare blending the area between financial and technology, the fintech companies that mightbe a software company providing back office systems to a bank.
It could be a software company that's providingthe client service applications for an insurance company.
This is an area that's definitely a focusand will be much more of a focus for us into the future.