BlackRock president Rob Kapito isn’t scared to talk about Wall Street’s biggest secret.
“Everyone knows the financial services sector has worse technology than any other industry,” he said at the Goldman Sachs financial services conference in New York on December 8.
Of course Kapito brought this up because he doesn’t feel that way about BlackRock. Its technology is fine, and that’s the asset manager’s advantage, he said.
Specifically, Kapito was talking about its risk and order management system, called Aladdin. Financial firms managing trillions of dollars depend on the system to customise trading positions.
That wasn’t all Kapito was eager to hype. BlackRock’s booming iShares ETF business — which activist investor Carl Icahn recently called “dangerous” because they’re overpriced and “extremely illiquid” — will help the company “double in size,” as people in places like the US, Japan and China increasingly look to invest due to a declining yield in savings accounts.
“If you don’t know about ETFs, you had better learn about ETFs,” Kapito said. “It’s a good product; the media doesn’t like it because they want something to go wrong.”