Alex “Pete” Hart knows all about technological disruption.
As the former CEO of Mastercard International, Hart helped make credit-card transactions commonplace. He continues to serve on high-profile corporate boards in Silicon Valley where he’s privy to ideas from some of the sharpest technology minds in the world.
Speaking to a gathering of the CFA Society in Naples, Fla., recently, Hart says digitization is changing every industry, even some you might not expect. “Every business is up for grabs,” Hart warns.
For example, Uber has transformed transportation and Airbnb has upended the hospitality sector. Health care, retail and many other industries will see transformations in automation that will be disruptive, too. “I think we’ll see the robotization of everything,” Hart says, pointing to Amazon’s army of warehouse robots.
The “staggering challenge,” Hart says, will be to figure out how people can continue to work and earn a living despite those changes. “The more technologically facile you are, the more likely you are to work,” he says.
On the financial technology front, Hart says Apple Pay is a precursor to the use of smartphones to pay for goods and services. The biggest challenges facing the electronic-payment industry now are reducing fraud and transaction delays from identification checks.
Governments have an incentive to encourage electronic payments because they can track money for revenue generation. “Mastercard and Visa have been enormous beneficiaries of that,” Hart says.
In addition to his insights on technology and financial services, Hart shared career lessons that started early in humble circumstances in small-town Ohio. Among them:
•Get past your fear of failure. “I’ve failed at so many things,” Hart says.
•We learn the most when we lose. Losing a job or a marriage are learning experiences.
•Things can always get better. Consider: The New England Patriots won the Super Bowl in one of the biggest comeback games in the game’s history.
•Never give up.