TECHNOLOGY
Charting 30+ Years of Fintech Innovation Naaz Scheik on AI, and the Future
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Naaz Scheik is the CEO and Founder of SoftPak Financial Systems, a pioneering company in the realm of financial technology. With a robust background in quantitative analysis and a visionary approach to technology, Naaz has been instrumental in transforming the landscape of financial software solutions.
Naaz began his career as a quantitative analyst at Wellington Management in Boston, where he honed his expertise in financial analytics and portfolio management. Recognizing the potential for innovation in financial technology, he took a bold step in 1994 to establish SoftPak Financial Systems. His mission was clear: to revolutionize financial technology software by making it more intuitive and equipping portfolio managers with cutting-edge analytical tools.
Under Naaz’s leadership, SoftPak has experienced remarkable growth. The company has expanded to employ over 150 professionals worldwide. SoftPak’s offerings have evolved from custom software solutions to a comprehensive suite that includes consultant placement and packaged software products, addressing the diverse needs of the financial industry. SoftPak’s technology solutions now power some of the largest global investment firms, processing over $500B per annum in trades and transactions.
Naaz holds a Master’s degree in Mathematics and Physics, having studied at Tufts University in Massachusetts. This strong foundation in quantitative disciplines has been a cornerstone of his success, enabling him to drive innovation and excellence within SoftPak and for its clients.
Throughout his career, Naaz Scheik has been committed to advancing the field of financial technology. His leadership and vision continue to steer SoftPak Financial Systems to the forefront of FinTech innovation.
As a pioneer in the fintech space, how have you seen the financial technology landscape evolve since SoftPak’s founding in 1994?
In the last 20 to 30 years, specifically in the field of quantitative portfolio management, all the methods for quantitative portfolio management have becomea lot more complicated and mathematically oriented as the computation power ofmachines hasbecome better and better. People are building more and more sophisticated models, whichin turn needs more sophisticated software to implement. Thus, I would say as the industry evolves, we would hope to see more and more advancements made in the field of fintech software development as well.
What do you see as the biggest challenges for financial institutions in adopting new technologies like AI and machine learning? How is SoftPak addressing these challenges?
Mainly investment management companies or the fintech industry at large deals with real money to the tune ofhundreds of billions of dollars. So, people generally are very careful. AI, despite being a great tool and containing multiple benefits for a business owner, still lacks the trust of multiple key players in the finance industry, who are hesitant to hand over billions of dollars to a new piece of technology.
Most financial experts would make a calculated decision on AIonce they know it is completely established and has proven its value in return. In essence, investment management companies are always managing somebody else’s money, so if they make a mistake or somehow the AI makes a mistake and they lose some money, it would be a disaster. We are watching AI very closely, and when it makes sense will be incorporating certain features into our products, but we will be conservative about how we do it.
SoftPak has been recognized for its flagship product, UREBAL. Can you share more about its innovative features and how it’s transforming portfolio management?
With UREBAL we have chosen a very unique algorithm,which is generally employed by portfolio optimizers we have redesigned that to work with model-centric rebalancing.So, our approach is very unique,but the benefits of this approach are limitless.
Whether you are doingloss harvesting, trying to minimize your tax spend, or simply trying to mimic your rebalancing where you want to be as close to the model as possible. In every case, this optimizer-based approach makes sure to guarantee that you will always end up with an optimal portfolio.
With SoftPak and UREBAL participating in Fintech Surge 2024, what are the key trends you’re most excited to showcase or discuss at the event?
Fintech Surge 2024 powered by GITEX Global, which is set to take place from the 13th to the 16th of October in Dubai, is our debut in the GCC market. Thus, it goes without saying we wish to present our products and offer our services, to a completely different financial environment.Ourgoal is to approachand hopefully meet as many of you as possible and showwhat our products and services have done to shape the US fintech market. You can also meet us at Stand No. H10-C09 at Fintech Surge 2024 for more details.
How is SoftPak staying ahead of the curve when it comes to integrating data security and compliance within its fintech solutions?
At SoftPak we routinely hire external security companies to audit and check our software for compliance. We had one drill where we hired a company that specializes in hacking websites,to test our systems and see how well it holds up to the testing sequence. Thankfully, we came back with only minor notes that we immediately implemented. We rely on third party testing to maintain our external certifications and maintain our record of trust and quality with our clients. The development teamalso uses software to make sure we are writing code which is compliant with ISO 27001. We follow those best practices post deployment as well.
The theme of Fintech Surge 2024 is innovation and collaboration. How do you see SoftPak or UREBAL fostering collaboration between fintech providers and traditional financial institutions or as they say in Dubai Brokerage Houses?
Currently many financial institutions in the Middle East are not using all the portfolio tools and software availablein the market. As such there is a huge potential gap for a big player like SoftPak to step in introduce our leading rebalancer, which has already been in use at top global investment firms.We’re excited to see the response to it in this market and to make it available to a wider audience. Up until today, ithas been very common for financial companiesto rebalanceon a spreadsheet.
So, presenting our products and services at FinTech Surge 2024 powered by GITEX Globalis a critical first step in introducing ourselves to this new market.
How do you see the fintech industry evolving in the future in emerging markets, and what role is SoftPak playing in expanding financial inclusion through technology?
The fintech industry in emerging markets is set to evolve rapidly, with a focus on increasing financial inclusion and accessibility. As these markets mature, we’ll see a shift towards adopting innovative solutions that cater to local needs, such as mobile banking, digital payments, and more accessible investment platforms. However, financial institutions in these regions tend to approach new emerging technology cautiously, given the high stakes involved with handling real money.
At SoftPak, we recognize this hesitation, which is why we take the time to work closely with financial institutions. We take the time to make sure our product is a good fit for clients and most importantly we want them to be successful. Our goal is to show that our technology is not only innovative but also reliable, tested, and capable of delivering on its promises. By providing customized, scalable fintech solutions that are proven and secure, SoftPak is helping to bridge the gap, enabling institutions to embrace change and expand financial inclusion in a meaningful way. This careful yet forward-thinking approach allows us to play a vital role in driving growth and enhancing financial accessibility in emerging markets.
What is the main message for attendees at Fintech Surge 2024, and how do you plan to engage with industry leaders during the event?
At Fintech Surge 2024 powered by GITEX Global, our core message is centered around the importance of embracing reliable and cutting-edge technology to drive growth. We will be showcasing our full suite of products and services, including UREBAL, which has been successfully implemented by some of the largest financial firms globally. Our aim is to demonstrate that our technology is not only well-tested and secure but also essential for firms seeking to accelerate their growth in a rapidly evolving market.
We plan to engage with industry leaders by providing real-world examples of our clients’ successes, offering live demonstrations, and fostering meaningful discussions about how technology can enable their businesses to stay competitive. Additionally, we’re looking forward to forging new partnerships and expanding our client base, particularly in the Middle East, where there is significant potential for growth and innovation in the financial sector.
Looking ahead, what are your long-term goals for SoftPak, and how do you plan to continue driving innovation post-Fintech Surge 2024 if you are successful in GCC?
Looking ahead, our long-term vision for SoftPak involves expanding beyond investment management and quantitative finance, which has been our core focus for many years. We see significant opportunities for horizontal growth by branching into related sectors such as commercial banking, trading, custodial services, and insurance. These industries share common financial principles, and our expertise in fintech can be applied to meet their specific needs.
If successful in the GCC region following Fintech Surge 2024, we plan to continue driving innovation by strategically entering these new sectors, providing tailored solutions that enhance operational efficiency and financial performance. Our goal is to gradually expand into one or two new industries while maintaining our commitment to delivering cutting-edge technology that supports the evolving needs of U.S. financial institutions.
In an industry that’s constantly evolving, what do you believe are the most significant trends shaping the future of fintech, and how is SoftPak adapting to these changes?
One of the most significant trends in fintech is the increasing demand for automation and efficiency in financial operations. Financial institutions are looking for ways to streamline processes like portfolio management, trading, and compliance to remain competitive. At SoftPak, we’re adapting by continuously improving our core offerings, like UREBAL, to ensure they meet these growing demands. We’re also focused on expanding into new areas of fintech, such as commercial banking and custodial services, to offer a broader range of solutions. The key is to stay nimble and responsive to client needs while maintaining the reliability and security that the financial industry demands.
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.
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