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Analyst Corner - Financials & Technology

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Natalie Taylor
Vice President, Equity Analyst,
CIBC Asset Management
“I’m Natalie Taylor, and I am CIBC Asset Management’s financial analyst, I cover both Canadian and U.S. financials, which includes banks, life insurance, asset managers.”

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Jonathan Mzengeza
Equity Analyst, Canadian Equities,
CIBC Asset Management
“I’m Jonathan Mzengeza. I work here at CIBC Asset Management covering  technology companies.”

Natalie
“Our primary responsibility is to use all of the information available to us: financial information, news, company meetings, analyst meetings, to make an assessment on the viability and growth prospects of a company.”

Jonathan
“It’s putting the financial information of the company to come up with an intrinsic value or target price that we feel reflects the value of the company.

One of my biggest challenges is trying to pick a winning trend, because in technology there are lots of trends that people will follow but they’re not going to make money for clients or be investable.”

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Collaborating to cover the FinTech space
Natalie
“I think the greatest opportunity for banks, with regards to fintech and technology, is the improvement in efficiency in productivity that it will allow them to achieve.”

Jonathan
“There’s no longer a need for us to go to the branch, or to go to an ATM to transfer money or to get money, we can all do that on our cell phones, at home on our laptops or on our computers.”

Natalie
“So, I think in five or 10 years’ time, we’ll see fewer bank branches, the format of bank branches will change, they’ll be more sales focused, less transaction focused, I think the days of long lineups to see the teller are behind us.”

Jonathan
“Another trend I think is going to be important is in terms of using analytics in order to give out loans to specific individuals, and pricing those loans, I think that’s going to be very important in five to 10 years’ time.”

Natalie
“I think that further technology advancements such as blockchain, which is really moving to a shared ledger, instead of individual ledgers at various banks, and then auditing and comparing those ledgers. Blockchain will enable another level of efficiency as well.”

Jonathan
“The greatest risk, for me, would be on the cybersecurity side. There are a lot of adverse actors out there, and they want to attack and try to get information on people, especially banking information because that’s really important.”

Natalie
“I think the biggest threat is if we were to see large established technology companies with good track records in customer service, without naming names of course, those are the more, the real threat because of their size, scale, and reputation.
I like my job because the market’s constantly changing. I get to meet a lot of interesting, very intelligent and powerful people, and no day is ever the same, and it’s just interesting coming to work every day.”